CSE dips to over 2-week low

Reuters - Sri Lankan shares extended losses to a fifth straight session on Monday as investors sold blue-chip stocks such as John Keells Holdings Plc after weak first-quarter numbers from the conglomerate dampened sentiment.

Conglomerate John Keels Holdings Plc after market hours on Thursday reported a 26% year-on-year fall in quarterly net profit.

The stocks, bond and foreign exchange markets were closed on Friday for a public holiday.

The Colombo stock index ended 0.41% weaker at 6,128.95, its lowest close since 12 July, extending its year-to-date loss to 3.8%.

The index dropped 0.47% last week, its first weekly fall in three.

Turnover stood at Rs. 169.4 million ($1.06 million), well below of this year’s daily average of Rs. 859.4 million.

“The market came down manly on JKH as the earnings came down,” said First Capital Holdings Plc Assistant Manager - Research Atchuthan Srirangan.

Shares of Keells fell 1.4% on Monday.

“Because the blue-chips are showing negative results, most of the investors are on the sidelines.”

Foreign investors bought equities net worth Rs. 1.4 million on Monday. But they have been net sellers of Rs. 2.5 billion worth of equities so far this year.

A downward revision in economic growth estimate earlier this month by the central bank has hurt sentiment, analysts have 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 earlier this month.

Shares in Hatton National Bank Plc ended 1.3% lower while Caltex Lubricant Lanka Plc closed 5.3% down and Sampath Bank Plc 

fell 1%.