Bourse slips to 8-month closing low

Saturday, 16 December 2017 00:00 - - {{hitsCtrl.values.hits}}

Reuters: Shares slipped to their lowest close in eight months on Friday as investors offloaded telecom and plantation stocks.

The Colombo Stock Index ended 0.08% weaker at 6,352.10, its lowest close since 17 April. It dropped 0.4% this week, in its sixth consecutive weekly decline.

“The downtrend is continuing with the selling in blue chips,” said Dimantha Mathew, Head of Research at First Capital Holdings, adding that was a bit of a worrying sign for the market.

Plantation stocks came under pressure after the Russian agricultural safety watchdog said on Thursday that the country will place temporary restrictions on imports of all agricultural products from Sri Lanka, including tea, from 18 December.

“The Russian restrictions on tea could pose a threat to long-term tea prices and it could impact the earnings of plantation companies,” said Mathew.

Turnover was Rs. 345.4 million ($2.25 million), the lowest since 9 December, and well below this year’s daily average of Rs. 938.9 million.

Foreign investors were net buyers of Rs. 180.1 million worth of shares on Friday, extending the year-to-date net foreign inflow to Rs. 18.3 billion worth of shares.

Shares of Sri Lanka Telecom Plc fell 1.5%, Hemas Holdings Plc ended 0.9% weaker and Asian Hotels and Properties Plc ended down 2%.