Stocks fall to over 5-week low on foreign selling

Tuesday, 18 February 2014 00:01 - - {{hitsCtrl.values.hits}}

Reuters: Shares fell for a third-straight session on Monday to a more than five-week low as foreign investors continued to dump the country’s risky assets, contrary to inflows into other emerging markets in Asia. Before the market opened, the Central Bank kept policy rates steady at multi-year lows, with inflation expected to be contained throughout 2014 by “well-managed demand conditions and improved domestic supply”. The main stock index ended 0.45% or 27.28 points weaker at 6,056.11, its lowest close since 8 January. It has lost over 3.07% in the last nine sessions through Monday. Foreign investors sold a net Rs. 144.7 million ($ 1.11 million) worth of shares on Monday, extending the foreign outflow to Rs. 4.64 billion in the past seven days as some offshore funds exited the market. The Bourse has seen Rs. 3.25 billion of foreign outflow so far in 2014, after enjoying a net inflow of Rs. 22.88 billion last year. Analysts said the market was waiting for directions on the foreign selling and concerned over further foreign outflows. Analysts said local investors are active in the market after interest rates on Treasury bills eased to multi-year lows, making fixed-income assets unattractive. Top conglomerate John Keells Holdings Plc lost 0.95%, to Rs. 219.90, pulling the overall index down. National Development Bank Plc, which posted a 93.5% drop in its December-quarter net profit, rose 1.26%. The index has risen 2.42% so far this year, following a 4.8% gain in 2013. It fell in the previous two years. The day’s turnover was Rs. 612.7 million, less than this year’s daily average of about Rs. 1.2 billion.

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