Stocks slip but policy rates remain unchanged

Reuters: Shares snapped three straight sessions of gains to end lower on Monday as investors booked profits and waited for cues from the Central Bank’s August monetary policy meeting later in the day.

The Central Bank is expected to keep its policy rates unchanged at record lows at the policy meeting, a Reuters poll showed. 

The country’s main stock index ended 0.59% lower, or down 43.58 points, at 7,306.94, not far off its lowest close since 23 July hit last Tuesday. “Investors are sceptical and the market is down on low trade,” said Reshan Kurukulasuriya, Chief Operating Officer of Richard Pieris Securities Ltd.

Foreign investors were net buyers for the first time in seven sessions on Monday, purchasing a net Rs. 29.7 million ($220,817.84) worth of shares on Monday. They have however been net sellers of Rs. 3.35 billion worth of shares so far this year.

Turnover stood at Rs. 517.8 million, its lowest since 21 July and around half this year’s daily average of Rs. 1.16 billion.

Shares in conglomerate John Keells Holdings fell 1.69% while Ceylon Tobacco Company Plc fell 1.59%, dragging down the overall index.