CSE ends flat in lean trade

Reuters: Sri Lankan shares closed flat yesterday after gaining for two straight sessions on mild profit-booking, as investors awaited fresh triggers amid thin trading, brokers said.

Sri Lanka’s Central Bank left its key policy rates unchanged as expected on Friday, and said the decision backed its goals for stabilising inflation and fostering sustainable economic growth.

The Colombo stock index ended 0.02% lower at 6,142.65.

The index hit its lowest close since July 12 and fell 0.16% during last week, recording its second weekly decline. It is down 3.6% so far this year.

Turnover stood at Rs. 296.3 million Sri Lankan ($1.86 million), well below this year’s daily average of Rs. 840 million.

“The market is at the moment searching for direction. Thought the valuations are attractive for investors to get in, there is no catalyst for the market to be positive,” said First Capital Holdings Research Head Dimantha Mathew. “There is not much of selling pressure either.”

Foreign investors bought equities worth a net Rs. 67.2 million yesterday, but have been net sellers of Rs. 2.5 billion worth of equities so far this year.

Sri Lanka’s Central Bank Governor Indrajit Coomaraswamy on 3 July said the economy is unlikely to grow more than 4% in 2018, falling short of an earlier estimate of 5%.

Shares of biggest listed lender Commercial Bank of Ceylon PLC fell 1.1% while Dialog Axiata PLC closed 2.1% weaker and Asian Hotel Properties PLC ended 4.4% down.