Shares edge down on profit taking, foreign-buying caps fall

Wednesday, 26 April 2017 00:00 - - {{hitsCtrl.values.hits}}

Reuters: Shares edged down for a second day on Tuesday as investors took profit after steady gains that lifted the index to a six-and-a-half-month high last week, although foreign buying for a twenty-third straight session capped the decline.

The Colombo stock index ended 0.2% weaker at 6,492.77, moving further away from its highest close since 11 October hit on Friday. It has climbed 9.4% in the 16 sessions through Friday, having risen for 15 sessions in that period.

The index added 2.1% last week, marking its fourth week of gains.

“This is profit taking as the index went up by almost 500 points early this month. But foreign investors are still on the buying side,” said Prashan Fernando, CEO at Acuity Stockbrokers.

Foreign investors bought Rs. 204.3 million worth of equities on a net basis and have been net buyers in the last 23 sessions, acquiring equities worth a net Rs. 12.1 billion ($ 79.74 million).

The year-to-date net foreign inflow is Rs. 14.6 billion.

Turnover stood at Rs. 986.6 million, higher than this year’s daily average of Rs. 874.6 million.

Market heavyweight John Keells Holdings lost 1.3%, while top private lender Commercial Bank of Ceylon fell 0.3%, dragging the overall index.