Bourse falls to lowest close in nine weeks

Reuters: Shares fell on Tuesday to their lowest close in nine weeks as negative sentiment over the island nation’s slower economic growth continued to weigh on the market.

However, foreign investors bought a net Rs. 477.1 million ($ 3.06 million) worth of shares, extending the year-to-date net foreign inflow to Rs. 7.4 billion worth of equities.

The Colombo stock index closed 0.13% weaker at 6,440.43, at its lowest close since 23 January.

The Bourse fell 1% last week, its fourth straight weekly drop.

Sri Lanka’s economy grew by 3.1% in 2017, the slowest pace in 16 years and well below the 4.5% seen in 2016, revised government data released last week showed.

“Most investors are on the sidelines waiting for the Central Bank’s interest rate decision in April,” said Reshan Kurukulasuriya, Chief Operating Officer, Richard Pieris Securities Ltd.

“But we can see some block trades taking place while foreign investors are also collecting.”

Turnover was Rs. 865.9 million ($ 5.55 million), less than this year’s daily average of around Rs. 955 million.

Shares in Ceylon Cold Stores Plc fell 3.9%, while conglomerate John Keells Holdings Plc ended 0.4% weaker and Lanka ORIX Leasing Company Plc ended 0.8% down.

Analysts said an increase in retail fuel prices also weighed on investor sentiment.

Sri Lankan fuel retailer Lanka IOC Plc, which fell 1.6% in the session, raised retail prices for gasoline and diesel over the weekend due to losses incurred after the Government’s failure to implement a pricing formula.