Shares end at 2-week low ahead of corporate results

Reuters: Shares hit a two-week closing low on Wednesday, their third straight session of losses, as increased risk appetite by foreign investors failed to offset selling pressure on index heavyweights and financials ahead of corporate results.

Trading volumes were moderate as cautious investors waited for announcements of corporate results for the September quarter starting later this month and for direction on economic policy when the country’s budget is unveiled early November, brokers said.

The benchmark index of the Colombo Stock Exchange ended 0.43% weaker at 6,510.18, its lowest close since 27 September.

“Similar sentiment will prevail until the next month budget,” said Acuity Research CEO Prasad Fernando.

Turnover was Rs. 609.3 million ($ 4.16 million), less than this year’s daily average of around Rs. 750 million.

Foreign investors, who have sold a net Rs. 2.46 billion worth of shares so far this year, bought a net Rs. 270 million worth equities on Wednesday.

Top fixed-line phone operator Sri Lanka Telecom lost 1.85%, while John Keells Holdings fell 0.39%.

Hatton National Bank and L B Finance, both of which accounted for around 50% of the turnover mainly due to purchases by foreign investors, ended 1.34% and 0.08% weaker, respectively.