Bourse dips to 3-month low

Reuters: Shares closed at their lowest in three months, pulled down by market heavyweight John Keells Holdings Plc, as political uncertainty ahead of the 17 August Parliamentary elections weighed on investor sentiment.

The main stock index ended 0.63% weaker at 6,923.79, its lowest close since 10 April and the biggest single-day loss since 3 June.

The day’s turnover stood at Rs. 518 million ($3.88 million), less than half of this year’s daily average of Rs. 1.06 billion.

“The market continues to come down with political uncertainty. What is happening is that not many investors are doing anything. That is why we see low turnover with continued foreign selling,” said Dimantha Mathew, a research manager at First Capital Equities Ltd.

Shares in John Keells Holdings fell 2.67%, while Sri Lanka Telecom Plc fell 2.91%, dragging down the overall index.

President Maithripala Sirisena dissolved Parliament on 26 June and scheduled elections for 17 August, in an effort to consolidate power and push through political reforms.

The market saw net foreign outflow of Rs. 2.57 million on Wednesday, extending the net outflow for the past 30 sessions to Rs. 4.85 billion.

However, foreign investors have been net buyers of Rs. 1.09 billion worth of shares so far this year.