Bourse at 1-week closing low; foreign inflows cap losses

Thursday, 8 June 2017 00:19 - - {{hitsCtrl.values.hits}}

Reuters: Shares ended down for a fourth consecutive session on Wednesday, and hit their lowest close in more than a week, due to profit-booking in large-cap shares such as Ceylon Tobacco Company Plc, but foreign inflows helped curb losses.

Analysts said investors are waiting to see the real impact of the floods and landslides caused by the worst torrential rains in 14 years, killing over 200 people and devastating crops.

The Colombo stock index ended down 0.08% at 6,664.00, its lowest close since 30 May. Turnover was Rs. 2.09 billion ($ 13.70 million), its highest since 24 May and well above this year’s daily average of Rs. 901.1 million.

Inflation could rise in the short term, especially due to crop damage and difficulties in distributing fresh food produce and staple food items, analysts said.

“Today, the turnover was very healthy with some crossings. But despite that, the market ended weaker as investors are worried over the real impact of the flooding,” said Yohan Samarakkody, head of research, SC Securities.

“The gloomy investor sentiment that we have seen during this week is mainly due to the floods, which will have an impact on the economy.”

Foreign investors, however, were net buyers of Rs. 316.3 million worth of shares, extending the year-to-date net foreign inflow to Rs. 20.1 billion.

Ceylon Cold Stores Plc, which accounted for 55% of the day’s turnover, ended down 5.6%.

Shares of Ceylon Tobacco Company slipped 1.11%, while the biggest listed lender Commercial Bank of Ceylon Plc declined 0.37%, Bukit Darah Plc shed 2.69% and Carson Cumberbatch Plc dropped 2.23%. The markets will be closed on Thursday for a Buddhist religious holiday. Trading will resume on Friday.