Stocks end at over 1-wk low; Teejay drags index

Reuters: Shares ended at their lowest in over a week on Wednesday led by textile company Teejay Lanka due to a fall in the rupee and on higher global cotton prices, brokers said.

The Colombo stock index ended down 0.23% at 6,518.64, its lowest since 24 April. The index lost 0.15% last week.

Teejay closed down 6.3%.

“Teejay shares were hit by both rupee depreciation and higher cotton prices in the world market,” said Atchuthan Srirangan, assistant manager-research at First Capital Holdings Plc.

Distilleries Company of Sri Lanka fell 0.9%.

The Sri Lankan rupee hit a fresh low on Wednesday on importer demand for the US currency, dealers said, but recovered after the Central Bank intervened in the market.

Fitch Ratings said on Thursday that recent political developments in Sri Lanka have created some uncertainty over reform momentum and fiscal consolidation, and prolonged upheaval could undermine investor confidence ahead of large external debt maturities in 2019-22.

Turnover stood at Rs. 612.8 million ($ 3.89 million), less than this year’s daily average of around Rs. 1.1 billion.

Foreign investors sold a net Rs. 18.3 million worth of equities yesterday, extending the net foreign outflow to Rs. 669.1 million worth of equities so far this year.