Stock market end at 1-week low on profit-taking

Colombo (Reuters): Shares fell to a one-week closing low on Tuesday on profit-booking in blue-chip shares such as John Keells Holdings Plc while investors assessed the impact of the recent floods on exchange rate and inflation.

Analysts said it was also too early to evaluate the real impact of the floods and landslides caused by the worst torrential rains in 14 years, killing over 200 people and devastating crops.

The Colombo stock index ended 0.1% weaker at 6,669.53, its lowest close since 30 May.

Turnover was Rs. 468.3 million ($ 3.07 million), around half of this year’s daily average of Rs. 889.6 million.

Inflation could rise in the short term, especially due to crop damage and difficulties in distributing fresh food produce and staple food items, analysts said.

“Some profit-taking is taking place. It’s a small pullback which is good for the future run,” said Atchuthan Srirangan, a senior research analyst at First Capital Holdings Plc.

Foreign investors were net buyers of 134.4 million rupees worth of shares, extending the year-to-date net foreign inflow to 19.78 billion rupees.

Shares of conglomerate John Keells Holdings Plc fell 0.82%, while Melstacorp Plc declined 1.36% and Dialog Axiata Plc shed 0.84%.