Bourse falls from near 7-week closing high; earnings eyed

Reuters: Stocks fell on Monday from their near seven-week closing high in the previous session as investors stayed on the sidelines ahead of financial results of blue chips like Commercial Bank of Ceylon Plc .

The main stock index ended lower 0.2%, or 14.10 points, at 7,147.86, snapping a seven-session rally.

It had closed at its highest since 1 June on Friday as hopes of political stability after the 17 August Parliamentary polls lifted sentiment.

Foreign investors sold a net Rs. 232.1 million ($1.73 million) worth of equities on Monday, extending the year-to-date net foreign outflow to Rs. 994.98 million.

“Most of the investors were on the sideline today. Investors are awaiting the earnings,” said Dimantha Mathew, a research manager at First Capital Equities Ltd.

Last Tuesday, President Maithripala Sirisena criticised a comeback bid by Mahinda Rajapaksa, the rival he beat in elections last January, and his own allies for backing him to become prime minister.

Analysts see Sirisena’s statement as a step towards strengthening his grip and one that is likely to help the ruling coalition win.

Turnover stood at Rs. 646.8 million on Monday, the lowest since 14 July and well below this year’s daily average of Rs. 1.06 billion.

Shares in the nation’s biggest listed lender, Commercial Bank of Ceylon, fell 0.83%, while Aitken Spence Hotel Holdings Plc dropped 4.15%.