Bourse dips on profit-taking but foreign buying up; cues from new FM awaited

Reuters: Shares fell for a second straight session and hit a near one-week low on Tuesday on profit-taking, while investors cautiously awaited policy direction from the country’s new finance minister.

President Maithripala Sirisena switched the finance and foreign ministers in a cabinet reshuffle on Monday, in a bid to restore confidence in the administration’s handling of the economy.

The Colombo stock index ended 0.55% weaker at 6,689.96, its lowest close since 15 May.

The Bourse recorded its highest close since 7 January 2016 on Friday.

The index rose 0.83% last week and has climbed 11% since 31 March through Friday.

Turnover stood at Rs. 807.7 million ($ 5.29 million), less than this year’s daily average of Rs. 886.5 million.

“The Market took a breather as there was a bit of retail selling while local participation was low,” said Softlogic Stockbrokers Deputy CEO Hussain Gani.

“The turnover levels are still good and we see continued foreign buying, a good sign.”

Foreign investors net bought shares worth Rs. 527.6 million worth of equities on Tuesday, extending their year-to-date net inflows to Rs. 18.5 billion.

Shares in Lion Brewery Plc fell 9.89% while Nanda Investment Plc fell 13.17%.

Ceylon Cold Stores Plc ended 2.59% weaker while the biggest listed lender, Commercial Bank of Ceylon Plc, fell 1.09%.