Banks drag Bourse to near 1-week low

Reuters: Shares fell to their lowest in nearly a week on Tuesday as investors took profits from recent gains in banking shares, while the rupee currency ended weaker on importer dollar demand.

The main stock index eased 0.2%, or 11.84 points, to close at 6,434.70, its lowest since 17 May. It hit a 19-month high on Thursday.

“The market is consolidating at these levels in low trading volumes,” said a stockbroker who declined to be identified.

Shares in Commercial Bank of Ceylon fell 0.8% in thin volume.

Market heavyweight John Keells Holdings, which after the market closed posted a 23% gain in its March quarterly earnings, edged up 0.3%. Foreign investors were net buyers of shares worth of Rs. 74.7 million, extending net foreign inflows this year to Rs. 13.3 billion.

Turnover was Rs. 553.2 million ($ 4.38 million), around half of this year’s daily average of Rs. 1.04 billion.

The market’s 14-day Relative Strength Index (RSI) was in over-bought territory of 78.948 on Tuesday and has been above the upper neutral level of 70 since 16 April, Thomson Reuters data showed.

The rupee ended weaker at 126.48/55, per dollar from Monday’s close of 126.38/40 on importer dollar demand, dealers said.