Profit-taking drags Lanka stocks from 8-month high

Reuters: Stocks fell one per cent on Tuesday from an eight-month high, snapping a four-day gaining streak as investors booked profits across the board.

The Colombo Stock Exchange’s main index ended 0.98 per cent, or 58.28 points, weaker at 5,910.81.

“The market is consolidating with a little bit of profit-taking and getting ready for the next run,” said a stockbroker, asking not to be identified.

The Central Bank held rates steady, as expected, on expectations that inflation will be contained within single digits, but said price pressures will prevail.

Analysts said investors shrugged off the Central Bank’s positive comments.

The index had risen 19 per cent in the 15 sessions through Monday on hopes that the newly-appointed Securities and Exchange Commission Head would come up with ideas to revive the market, which is down 1.73 per cent since the start of the year.

Turnover on Tuesday was Rs. 1.84 billion ($ 13.94 million), more than the year’s daily average of Rs. 913.9 million.

The exchange saw a net foreign inflow of Rs. 175.1 million worth of shares, extending the net foreign inflow so far this year to Rs. 29.61 billion.

The rupee closed firmer at 131.90/95 to the dollar compared with Monday’s close of 132/10 as banks sold dollars on stock-related transactions, dealers said.