Bourse slips on profit-taking, month-end settlements

Reuters: Sri Lankan shares fell on Monday from the previous session’s two-months high, snapping a three-session gaining streak due to profit-taking and month-end settlements.

The main stock index ended lower 0.3%, or 21.82 points, at 7,247.23, slipping from its highest since 25 May hit on Friday.

Hopes of improved corporate earnings and political stability after the parliamentary polls next month have boosted investor sentiment.

“The market has run out of steam, with a bit of profit-taking and month-end settlements, but there was not much of selling pressure,” said Dimantha Mathew, a research manager at First Capital Equities Ltd.

Turnover was Rs. 1.09 billion ($ 8.15 million), just above this year’s daily average of Rs. 1.06 billion.

Foreign investors were net buyers of Rs. 64.9 million on Monday, extending the net foreign inflows during the past three sessions to Rs. 1.07 billion.

Analysts also expect Sri Lankan companies to post strong results for the April-June quarter.

Ceylon Cold Stores Plc fell 2.74%, while Aitken Spence Plc fell 2.10%.