Bourse ends lower; turnover hits 15-week low

Reuters: Shares slipped on Friday from their highest close in a week hit in the previous session, led by blue-chip stocks with the day’s turnover slumping to a 15-week low ahead of the traditional Sinhala-Tamil New Year later next week, brokers said.

The turnover stood at Rs. 134.6 million ($866,152), its lowest since 22 December 2017, and well below this year’s daily average of around Rs. 1.2 billion.

The Colombo stock index ended 0.3% down at 6,455.32, edging down from its highest close since 29 March hit on Thursday.

The Central Bank unexpectedly cut its key lending rate by 25 basis points on Wednesday, as policy makers sought to revitalise an economy growing at its weakest pace in 16 years and facing heightened political uncertainty.

The index fell 0.33% during the week and dropped 1.14% last month.

“Market conditions were extremely slow with the festival season ahead. Foreign outflow is also continuing,” said First Capital Holdings Head of Research Dimantha Mathew.

Foreign investors sold shares worth net Rs. 19.1 million on Friday extending the year-to-date net foreign outflow to Rs. 890.7 million worth of equities.

Shares in Distilleries Company of Sri Lanka Plc ended 3.2% lower, while Dialog Axiata Plc closed 0.7% down, Soflogic Holdings Plc ended 2.6% weaker and John Keells Holdings Plc closed 0.3% lower.