Bourse down on telecommunications, hotels; foreigners sell
Saturday, 21 June 2014 00:01
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Reuters: Shares fell for the third straight session on Friday to a more than one-week closing low as foreign investors offloaded telecommunications and hotel stocks.
However, analysts said the index would be on a slow rising trend this year due to lower interest rate. The main stock index fell 0.17% or 10.75 points to 6,302.45, its lowest since 11 June. It hit a more than one-year high on Tuesday.
“It was a sideway market. In the short term, we do not see any much risks because of the lower interest rates,” a stockbroker said on condition of anonymity.
“However, concerns over the recent violence and the news that the country has been importing Iran crude despite sanctions could have an impact,” the stockbroker said.
The Bourse saw a net foreign outflow of Rs. 190.1 million ($ 1.46 million), but they have been net buyers of Rs. 5.68 billion so far this year.
Dealers said investors perceive the weekend violence that killed at least three people and left over 75 people seriously injured could hit the market and tourism sector.
The market has been on a rising trend since late February due to the continued foreign buying and lower interest rates. It fell on Wednesday after the Central Bank held the key policy rates steady, though some had expected a rate cut.
Turnover was Rs. 1.21 billion, more than this year’s daily average of Rs. 1 billion.
Shares of Conglomerate John Keells Holdings Plc, which accounted for 22% of the day’s turnover, fell 0.63% to Rs. 220.7.
Shares in leading fixed line telephone operator Sri Lanka Telecom Plc fell 2.71% to Rs. 46.70, while Asian Hotels and Properties Plc slid 5.35%.
