Bourse extend declines, foreign buying curbs fall

Reuters: Sri Lankan shares ended down for a sixth consecutive session on Wednesday, hitting their lowest close in more than two weeks, as retail investors sold blue chips, but foreign buying in the island nation’s risky assets capped further decline.

The Colombo Stock Index ended 0.13% weaker at 6,439.34, its lowest close since 2 January. It has shed 1.6% in the past six sessions.

“Things were a bit slower and the trend is continuing,” said Dimantha Mathew, head of research, First Capital Holdings. “Market is coming towards a correction rather than profit-taking as the latter lasted far more than expected. However, foreigners are still on the buying side.”

Foreign investors bought shares worth net Rs. 146.2 million ($949,968) on Wednesday, extending the net foreign inflow so far this year to Rs. 3 billion.

They had net bought Rs. 18.5 billion worth equities in 2017 and Rs. 633.5 million in 2016.

Turnover stood at Rs. 491.1 million on Wednesday, less than last year’s daily average of Rs. 915.3 million.

Shares in Hemas Holdings Plc ended 1.8% lower, Sri Lanka Telecom Plc closed 1.4% down, and Overseas Realty Plc closed 2.9% lower.