Bourse ends lower on profit-taking; investors pick diversified stocks

Reuters: Shares ended lower on Monday, slipping from a nine-week closing high hit in the previous session, as investors booked profits in banking and diversified stocks, but continued foreign buying helped boost sentiment, brokers said.

The Colombo stock index ended 0.2% weaker at 6,515.84, edging down from its highest close since 4 August hit on Friday. The Bourse rose 1.4% last week, recording its fourth straight weekly gain.

Foreign investors bought a net Rs. 225.2 million ($ 1.47 million) worth of equities on Monday extending the year-to-date net foreign inflow to Rs. 20.1 billion worth of shares.

Turnover stood at Rs. 1 billion ($ 6.53 million), more than this year’s daily average of Rs. 923.9 million.

“Market is very positive with continued foreign buying, though the index ended negative,” said Dimantha Mathew, head of research, First Capital Holdings.

“The index came down mainly because of the profit-taking in Commercial Bank shares,” he added.

Shares of biggest listed lender Commercial Bank of Ceylon Plc ended 1.2% down, while conglomerate John Keells Holdings Plc closed 0.3% lower and Commercial Leasing and Finance Plc finished 3.3% down.