Thursday, 24 April 2014 00:00
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Reuters: Shares fell on Wednesday after five days of gains as investors booked profits in large caps despite moderate foreign inflows into the country’s risky assets.
The main stock index fell 0.31%, or 19.06 points, to 6,172.77, slipping from its highest close since 3 February hit in the previous session. The day’s loss erased around Rs. 8 billion worth market capitalisation of the Bourse.
The Bourse gained 1.61% in the five sessions through Tuesday as lower interest rates helped to attract some retail investors, stockbrokers said.
The benchmark 91-day treasury bill yield dropped three basis points to 6.58%, the lowest since January 2007 when the Central Bank made available data.
The Central Bank on Tuesday kept policy rates steady at multi-year lows, as expected, and expressed confidence that private sector credit growth would rebound in the second quarter and push up the pace of economic expansion.
The day’s turnover was Rs. 670.8 million ($ 5.14 million), less than this year’s daily average of Rs. 963.6 million.
The Bourse saw net foreign inflows for a 10th straight session. Offshore investors bought Rs. 109.6 million worth of stocks, though they have sold a net Rs. 7.59 billion of shares so far this year.
Shares in Ceylon Tobacco Company PLC fell 1.16% to Rs. 1,105.20, while Bukit Darah PLC lost 5.34% at Rs. 541.
Shares in top conglomerate and market heavyweight John Keells Holdings PLC fell 0.38% to Rs. 239.
Stockbrokers expect the nation’s $ 19.79 billion Bourse to gain in the short term due to prevailing lower interest rates.
Analysts, however, said foreign investors could shift from the country’s risky assets if Sri Lanka does not cooperate in an international probe by the Office of the United Nations’ High Commissioner for Human Rights into the country’s alleged war crimes and human rights abuses.
The Foreign Minister had said earlier this month that the country would not cooperate with the inquiry.
