CSE hit near 15-mth closing low on margin calls, foreign selling

Wednesday, 27 June 2018 00:12 - - {{hitsCtrl.values.hits}}

Reuters: Sri Lankan shares fell for a third straight session on Tuesday and posted their lowest close in nearly 15 months as margin calls triggered selling and as foreign investors continued to offload the island nation’s risky assets.

The Colombo stock index ended 0.52% weaker at 6,188.05, its lowest close since 4 April 2017.

“Margin calls are coming up and selling is accelerating. Foreign selling is also dragging the market,” said Dimantha Mathew, head of research, First Capital Holdings.

Foreign investors net sold equities worth Rs. 26.4 million, extending the year-to-date foreign outflows to Rs. 978.7 million this year.

Turnover was Rs. 541.2 million ($ 3.42 million), well below this year’s daily average of Rs. 931.9 million.

Shares of Sri Lanka Telecom Plc lost 5.8%, while conglomerate John Keells Holdings Plc ended 1.3% weaker, Hatton National Bank Plc closed 2.2% down and Ceylon Tobacco Company Plc ended 0.8% lower.

Finance Minister Mangala Samaraweera said last week the economy was likely to grow about 4.5% this year, below a Central Bank estimate of 5%.

The International Monetary Fund (IMF) on Wednesday said Sri Lanka’s economy remained vulnerable to adverse shocks because of sizable public debt and large refinancing needs.

Stock, bond and foreign exchange markets are closed on Wednesday for a public holiday.