CSE dips; foreign selling continues

Reuters: Sri Lankan shares slipped yesterday from their highest close in nearly three weeks recorded in the previous session as investors sold diversified and telecommunication shares.

Foreign investors sold net equities worth Rs. 34.1 million yesterday, extending the year-to-date net foreign outflow to Rs. 2.7 billion.

The Colombo stock index ended 0.31% weaker at 6,160.69.

“There is some profit-taking while foreign selling is still continuing,” said First Capital Holdings Head of Research Dimantha Mathew. “We see some local buying slowly coming in to the market, which is a good sign.”

Turnover stood at Rs. 543.8 million ($ 3.40 million), less than this year’s daily average of Rs. 892.3 million.

A downward revision in economic growth estimate by the Central Bank has also hurt sentiment, analysts said.

Economic growth in 2018 is likely to be between 4% and 4.5%, falling short of an earlier estimate of 5%, Central Bank Governor Indrajit Coomaraswamy said early this month.

Shares in Dialog Axiata PLC fell 1.4%, while conglomerate John Keells Holdings PLC ended 1.1% weaker and Melstacrop Ltd. lost 2.2%.