Bourse hits 1-week low; all eyes on cabinet reshuffle

Tuesday, 24 April 2018 00:09 - - {{hitsCtrl.values.hits}}

Reuters: Sri Lankan share index ended marginally weaker yesterday, hitting a one-week closing low, as investors awaited fresh cues as a new cabinet is expected to be sworn in this week, stockbrokers said.

The market has been waiting for some political stability after President Maithripala Sirisena suspended parliament until May 8, brokers said. The cabinet reshuffle was expected yesterday, but Government sources said it has been delayed.

The Colombo stock index ended 0.24% weaker at 6,525.17, its lowest close since 16 April. The index gained 0.88% last week.

“The sentiment has not yet improved. The market is awaiting the cabinet reshuffle to see some political stability,” said Acuity Stockbrokers CEO Prashan Fernando.

Turnover stood at Rs. 554.8 million ($3.54 million), around half of this year’s daily average of Rs. 1.1 billion.

Shares in Distilleries Company of Sri Lanka PLC fell 2.7% while Ceylinco Insurance PLC ended 2.3% weaker, and Cargills (Ceylon) PLC closed 1.2% down.

Foreign investors bought shares worth a net Rs. 100.5 million yesterday, but they have been net sellers of Rs. 1.2 billion worth of equities so far this year.