Bourse slips from near 7-month high on profit-taking

Reuters: Shares ended weaker on Thursday, down from a nearly seven-month closing high in the previous session, as investors booked profits even as some foreign investors sold shares ahead of the key 17 August parliamentary election, brokers said.

The index has risen nearly 8% since 8 July through Wednesday on hopes of improved corporate earnings and political stability, brokers said.

The main stock index ended 0.39% or 29.15 points weaker at 7,442.75, slipping from its highest close since 16 January hit on Wednesday.

Foreign investors sold a net Rs. 23.8 million ($ 177,745) worth equities on Thursday. They have offloaded a net Rs. 1.19 billion worth of shares so far this year.

“The benchmark index continued on a downward path during the day.. On the back of low investor interest both volume and turnover slumped while foreign participation continued to remain low,” First Capital Equities Ltd said in a note to investors. Shares in Dialog Axiata Plc fell 1.68% while conglomerate John Keells Holdings Plc fell 0.57%, dragging the index lower.

Turnover stood at Rs. 978.7 million on Thursday, below this year’s daily average of Rs. 1.13 billion.