CSE extends fall on growth worries

Reuters: Shares fell for a second straight session on Tuesday and posted their lowest close in seven weeks in low trade, as investors sold diversified and beverage stocks on worries over slower economic growth, brokers said.

The statistics department withdrew its 2017 full-year and fourth-quarter GDP data on Friday, a day after saying the economy expanded 3.1% last year, the slowest pace in 16 years, and 1.4% in the fourth quarter.

The Colombo stock index fell 0.48% to 6,462.50, its lowest close since 29 January. It dropped 0.6% last week in its third straight weekly decline.

“It’s a slow day with both local and foreign investors taking a wait-and-see approach,” said Dimantha Mathew, head of research, First Capital Holdings.

He said investors took a pause due to confusion following the withdrawal of GDP data and ahead of the US Federal Reserve’s policy decision.

Turnover was Rs. 286.7 million ($ 1.84 million), the lowest since 19 February and less than a third of this year’s daily average of around Rs. 942.3 million.

Shares in conglomerate John Keells Holdings Plc dropped 2.6%, Nestle Lanka Plc fell 0.5% and Sri Lanka Telecom Plc declined 2.2%.

Foreign investors sold a net Rs. 27.8 million worth of shares, but they have been net buyers of Rs. 7.2 billion worth of equities so far this year.