Large caps drag bourse down

Thursday, 6 June 2013 02:02 - - {{hitsCtrl.values.hits}}

REUTERS: Sri Lankan shares fell for a third straight session on Wednesday to their lowest close in nearly three weeks, as investors booked profits in blue-chi companies like John Keells Holdings and Commercial Bank of Ceylon in an overbought market.

However, foreign investors bought shares on a net basis for a 19th straight session. The bourse saw a net foreign inflow of Rs. 314 million, extending year-to-date inflows to Rs. 14.76 billion.

The main stock index fell 0.42%, or 26.82 points, to 6,422.84, the lowest close since 17 May.

Foreign investors accounted for around 52.8% of the day’s turnover of Rs. 818.3 million (US$ 6.47 million), less than this year’s daily average of Rs. 1.04 billion.

“Consolidation is continuing and the market is taking time for the next run. We expect the market to be at these levels before gaining,” said a stockbroker asking not to be named.

He expects the market to rise with more foreign buying after a road show, which is being held in Dubai with the participation of top market and regulatory officials to attract foreign inflows into the bourse.

Shares in conglomerate John Keells Holdings fell 0.82% to Rs. 279.40, while Commercial Bank of Ceylon lost 0.56% to Rs. 123.30.

The market’s 14-day Relative Strength Index (RSI) was still in overbought territory, at 72.992 on Wednesday and has been above the upper neutral level of 70 since 16 April, Thomson Reuters data showed.

The rupee ended firmer at Rs. 126.43/45 per dollar from Tuesday’s close of Rs. 126.50/52 on thin volume of inflows from remittances and stocks-related transactions, dealers said.

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