Tuesday, 24 March 2015 00:12
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Reuters: Shares ended a tad weaker on Monday in thin volume led by select shares such as Access Engineering Plc, while investors awaited cues on interest rates.
The main stock index ended 0.17%, or 12.28 points, weaker at 7,042.3, hovering near its lowest close since 2 February hit on Wednesday. It had lost 3.74% in the last 13 sessions through Wednesday.
“It seems like people are staying out of the market,” said Dimantha Mathew, research manager at First Capital Equities (Pvt) Ltd.
Infrastructure firm Access Engineering was down 5.56%, a day after it fell 10% after the new Government cancelled an $ 85 million airport runway project awarded by the previous Government.
Analysts expect the market to be in the red until the political situation stabilises even after Sri Lankan President Maithripala Sirisena formed a National Government on Sunday.
Sirisena, incorporating the main opposition party, has formed a National Government in a bid to push through reforms and preserve political stability.
Analysts said the market was awaiting clarity on interest rates after yields on t-bills fell between 31 and 44 basis points at a weekly auction on Wednesday, after having spiked to 112-124 basis points the two previous weekly auctions.
The Central Bank on Wednesday said the low-interest rate environment is expected to continue benefiting from lower inflation while keeping policy rates steady.
The day’s turnover stood at Rs. 395.1 million ($ 2.97 million), well below this year’s daily average of Rs. 1.22 billion.
Foreign investors were net sellers of Rs. 8.02 million worth of shares, but have been net buyers of Rs. 3.35 billion worth of shares so far this year.
