Bourse slips from near 3-year high on profit-taking

Saturday, 16 August 2014 00:33 - - {{hitsCtrl.values.hits}}

Reuters: Stocks fell on Friday to end an eight-session winning streak as investors took profits in shares of large-caps, while foreigners also sold in an overbought market.

The main stock index finished lower 0.42%, or 29.24 points, at 6,943.85, edging down from its highest close in nearly three years hit on Thursday. The index has gained 17.4% so far this year. “It’s a bit of profit-taking in blue-chips and a correction, since the market is struggling to pass the 7,000 mark we will see selling pressure for a while,” said Dimantha Mathew, Manager – Research, at First Capital Equities Ltd. The Bourse saw net foreign outflows of Rs. 893.8 million ($ 6.9 million) on Friday, but foreign investors have been net buyers of Rs. 11.78 billion worth of shares so far this year. Turnover, boosted by block deals in John Keells Holdings Plc, hit Rs. 2.94 billion, more than double this year’s daily average of Rs. 1.13 billion. Conglomerate John Keells, which accounted for 59.8% of the day’s turnover and saw 4.4 million shares being sold by foreigners, fell 0.38% to Rs. 238 a share. Earlier in the day, the central bank held key policy rates at multi-year lows for the seventh straight month. Union Bank of Colombo Plc fell 9.87% to Rs. 21 a day after the bank said it had agreed to sell a 70% stake to a subsidiary of TPG Capital Management LP for $ 117 million. Ceylon Tobacco Co Plc, which led the fall in the overall index, fell 0.91% to 1,184.90 rupees, while Carson Cumberbatch Plc fell 1.04% to Rs. 455.