Bourse slips on month-end forced selling

Saturday, 28 February 2015 00:40 - - {{hitsCtrl.values.hits}}

Reuters: Stocks closed a tad weaker on Friday on forced selling due to month-end settlements, while foreign investors exited risky assets amid political uncertainty ahead of parliamentary elections.

Foreign investors, who have bought Rs. 1.51 billion worth shares so far this year, sold a net Rs. 163.6 million on Friday, extending net forging selling for a second straight session to Rs. 490 million. “The downward trend continued today because of month-end settlements, margin selling and profit-taking amid political uncertainty,” said Dimantha Mathew, Manager, Research at First Capital Equities Ltd. Elections to Sri Lanka’s 225-member Parliament are expected to be announced after 23 April and it is unclear whether the ruling coalition led by President Maithripala Sirisena would contest unitedly or go to the polls separately. The main stock index ended 0.22% weaker, or 16.15 points, at 7,301.29, marking their third session of losses in four. It fell 0.2% for the week. Shares of Shalimar Estate Plc fell 2.88%, Nestle Lanka Plc dropped 1.42% and Sri Lanka Telecom Plc declined 1.22%. Turnover was Rs. 932 million ($7.00 million), well below this year’s daily average of Rs. 1.4 billion.