Bourse slips from 3-month high on correction, foreign selling

Tuesday, 22 January 2013 00:00 - - {{hitsCtrl.values.hits}}

The stock market ended marginally weaker on Monday, slipping off a three-month high, with top fixed-line phone operator Sri Lanka Telecom pulling down the index amid foreign selling.

The main share index closed 0.23%, or 13.75 points weaker, at 5,862.02, from its highest close since 3 October.

The market has been overbought since early this year with its 14-day relative index at 80.448 on Monday, well above the upper neutral range of 70, Reuters data showed.

“It’s a technical correction. We still see optimism among investors due to declining interest rates,” a stockbroker said on condition of anonymity.

Shares in Sri Lanka Telecom fell 5.05% to 47 rupees in thin volume.

Yields in Government securities have been falling due to foreign inflows into Treasury bills and bonds in recent weeks.

Turnover on Monday was Rs. 899.87 million ($ 7.11 million). Foreign investors were net sellers of Rs. 370.98 million worth of shares, but have been net buyers of Rs. 110.15 million this year. Sri Lanka last year enjoyed a record inflow of Rs. 38.63 billion.

The rupee closed marginally weaker at 126.62/66 to the dollar from Friday’s close of 126.55/60.