Stocks retreat from two-week high, concerns remain
Tuesday, 17 September 2013 00:45
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REUTERS: Sri Lankan stocks slipped from a two-week high on Monday, ending a four-day winning streak, led by large cap Ceylon Tobacco Co PLC amid foreign outflows, with further falls expected due to a lack of confidence in the nation’s risky assets.
The main share index edged down 0.34%, or 19.34 points, to close at 5,730.12, after touching a near two-week high on Friday.
“At the moment, the outlook seems to be bleak,” a stockbroker said on condition of anonymity.
“We haven’t seen investors buying stocks despite interest rate reduction by the Central Bank. There is a problem with the confidence. There could be gains, but the trend will be weak unless there is strong market moving news,” the stockbroker said.
Brokers also said an expensive borrowing by state-owned National Savings Bank’s (NSB) has also raised concern over interest rate outlook in the future.
Shares in Ceylon Tobacco Co PLC (CTC) fell 3.13% to Rs. 1,085 while Sri Lanka Telecom PLC fell 4.94% to Rs. 38.50.
Foreign investors were net sellers of Rs. 69.1 million ($ 522,500) worth of shares on Monday, However, they have been net buyers of Rs. 19.31 billion worth of shares so far this year.
Monday’s turnover was Rs. 683.5 million, less than this year’s daily average of about Rs. 882 million.
