Shares end lower; blue chips lead

Friday, 8 June 2018 00:00 - - {{hitsCtrl.values.hits}}

Reuters: Shares ended weaker on Thursday, after breaching the psychological barrier of 6,400, pulled down by blue-chip shares such as John Keells Holdings Plc, brokers said.

Foreign investors, who were net sellers for the first time in five sessions, sold a net Rs. 114.3 million ($ 719,773.3) worth of equities on Thursday, extending the year-to-date net foreign outflow to Rs. 576.1 million worth of shares.

The Colombo stock index closed 0.57% weaker at 6,363.62.

Analysts expected a further decline in the index as there weren’t any positive news to boost market sentiment. “The selling pressure is there after the index broke the psychological barrier of 6,400 on Wednesday,” said Dimantha Mathew, head of research, First Capital Holdings.

“We don’t see real positivity among the investors, and we expect the index to continue sliding till the next support level of 6,320.”

Most of the investors have adopted the wait-and-watch approach, hoping for some positive news especially on the economic front, analysts said. Turnover was Rs. 545.7 million, below this year’s daily average of Rs. 982.1 million.

A weaker rupee, political uncertainty and the recent fuel price hike weighed on sentiment in the past week, as local investors mostly remained on the sidelines as they gauged the impact of the floods that killed 24 people in the island nation over the past two weeks, brokers said.

The rupee touched its record low of 158.90 per dollar on Thursday owing to the demand from importers for the greenback.

Shares in conglomerate John Keells Holdings Plc ended 0.8% weaker, while Lanka ORIX leasing Plc closed 3.6% and Distiller Company of Sri Lanka Plc ended down 1.8%.