Friday, 25 July 2014 00:00
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Reuters: Stocks slipped on Thursday for a second straight session, moving further away from Tuesday’s 34-month closing high as investors booked profits, brokers said.
The main stock index ended 0.04%, or 2.58 points lower at 6,781.40, slipping further away from the highest close since 20 September 2011, hit on Tuesday. It has gained 6.35% so far this month.
The index has been in the overbought region since 3 July, having risen 14.73% so far this year as local investors moved funds from fixed income to riskier assets in view of the low interest rates. “Profit-taking continued today also. We might see a bit of profit-taking,” said a stock broker asking not to be named.
Turnover was Rs. 950 million ($ 7.30 million), less than this year’s daily average of about Rs. 1.09 billion.
Foreign investors were net buyers of Rs. 55.8 million worth of shares on Thursday, extending the year-to-date net foreign inflow in shares to Rs. 10.37 billion. Shares of conglomerate John Keells Holdings Plc fell 0.04% to Rs. 239.80 while Carsons Cumberbatch Plc fell 1.96% to Rs. 480.
Lower interest rates have prompted local investors to buy shares and move away from unattractive fixed assets, analysts said.
Yields on Treasury bills edged down further at a weekly auction on Wednesday.
Foreigners have been buying risky assets because they see value in them, analysts said.
