CSE falls to nearly 7-week closing low on growth worries

Reuters: Sri Lankan shares fell to their lowest close in nearly seven weeks yesterday (19 March), as investors sold diversified and manufacturing stocks on worries over slower economic growth, brokers said.

The statistics department withdrew its 2017 full-year and fourth-quarter GDP data on Friday (16 March), 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 0.24% to 6,493.63, its lowest since 30 January. It dropped 0.6% last week in its third straight weekly decline.

“It’s a dull day as most of investors were on the side-lines and worried over the GDP,” said First Capital Holdings PLC senior research analyst Atchuthan Srirangan.

Turnover was Rs. 396.5 million ($5.29 million), the lowest since 7 March and well below this year’s daily average of around Rs. 966.8 million.

Shares in Vallibel One PLC fell 1.7%, Carson Cumberbatch PLC ended 2.8% weaker, and Sri Lanka Telecom PLC lost 1.4%.

Foreign investors bought a net Rs. 58.1 million worth of shares, extending the year-to-date net foreign inflow to Rs. 7.2 billion worth of equities.