CSE ends weaker near 14-month low in dull trade

Reuters: Shares ended weaker on Monday, staying close to a 14-month low hit last week as investors sold diversified shares in dull trade with turnover at a nine-week low.

The Colombo stock index ended 0.13% weaker at 6,220.13, near its lowest close since April 2017, which was on Wednesday.

The bourse fell 1.63% last week recording its fifth straight week of losses.

“Low key market with marginal dip,” said Hussain Gani, Deputy Chief Executive at Softlogic Stockbrokers.

“Its mainly local investor participation, we’ve not seen major foreign activity. Investors are waiting for opportunities and they will get in when there is an opportunity.”

Turnover was Rs. 176.1 million ($1.11 million), its lowest since 16 April and well below this year’s daily average of Rs. 935.3 million.

Foreign investors sold equities of a net worth of Rs. 18 million, extending the year-to-date net foreign outflows to Rs. 952.3 million of shares this year.

Shares of Hatton National Bank Plc lost 1.2%, while Distillers Company of Sri Lanka Plc ended 0.96% weaker, Carsons Cumberbatch Plc closed 1.9% down and Lanka IOC Plc ended 1.2% weaker.

Finance Minister Mangala Samaraweera said last week the economy was likely to grow about 4.5% this year, below a Central Bank estimate of 5%.

The International Monetary Fund (IMF) on Wednesday said Sri Lanka’s economy remained vulnerable to adverse shocks because of sizeable public debt and large refinancing needs.