Stock market snaps 11-session winning streak on profit-taking

Reuters: Shares fell on Monday from a five-month closing high to snap an 11-session winning streak as investors took profits in blue chips that had gained in a rally driven by foreign-buying.

The Colombo stock index ended down 0.8% at 6,351.26, slipping from its highest close since 15 November hit in the previous session.

The index had climbed 7.2% over 11 gaining sessions up to Wednesday. The market was closed for Sri Lanka’s traditional New Year holidays on Thursday and Friday.

“It is a healthy profit-taking after the recent gains,” said Hussain Gani, deputy CEO at Softlogic Stockbrokers. “We expect the market to stabilise at these level with foreign interest in select counters.”

The market has seen fund inflows for 17 straight sessions through Monday, with foreign investors buying a net Rs. 5.23 billion ($ 34.5 million) worth of equities in the period.

They net-bought shares worth Rs. 7.1 million on Monday, raising the year-to-date net foreign inflow into equities to Rs. 7.71 billion.

Turnover was dull on the first day of trading after the long holiday, and stood at Rs. 365.1 million, less than half of this year’s daily average of Rs. 774.8 million.

Shares of Ceylon Tobacco Company Plc lost 4.8%, while conglomerate John Keells Holdings Plc fell 1.3%.