Stocks end lower for 7th straight session

Reuters: Sri Lankan shares closed lower for a seventh straight session yesterday, with turnover slumping to a more than three-week low as investors sold diversified shares.

The Colombo stock index ended 0.17% weaker at 6,337.88, its lowest close since 22 December 2017. The index dropped 0.4% during the week, marking its fourth straight weekly fall. Shares in Dialog Axiata PLC closed 0.7% weaker, while conglomerate John Keells Holdings PLC ended 0.1% lower and Lanka IOC PLC closed 3.5% weaker.

“The sentiment is still lousy. We don’t see much activity from retail investors and government funds,” said Acuity Stockbrokers CEO Prashan Fernando.

Foreign investors net sold Rs. 32.5 million ($203,762) worth of equities yesterday, extending the year-to-date net foreign outflow to Rs. 773.6 million worth of shares.

Turnover stood at Rs. 273.3 million, the lowest since 23 May and less than a third of this year’s daily average of Rs. 958.2 million.

Most investors have adopted a wait-and-watch approach, hoping for some positive news on the economic front, analysts said.

A weaker rupee, political uncertainty and the recent fuel price hike has weighed on sentiment over the past few weeks, with local investors remaining on the sidelines as they gauge the impact of the floods last month, brokers said.

The Sri Lankan stock market will be closed for a public holiday on Friday.