Shares end lower amid foreign fund outflow

Reuters: Shares slipped on Monday from a near 10-week closing high hit in the previous session, led by financials amid foreign investor outflow as rising interest rates and lower earnings in the March quarter dented investor sentiment, brokers said.

The benchmark stock index ended 0.3% weaker, or 19.01 points, at 6,382.31, slipping from its highest close since 8 February hit on Friday.

Foreign investors were net sellers of Rs. 221.5 million ($1.53 million) worth equities on Monday, extending the year-to-date net foreign outflow to Rs. 3.32 billion worth of shares.

“Market showed some dry activities and the retail activity was very dull after the New Year (holidays),” said Yohan Samarakkody, Head of Research, SC Securities Ltd.

Investors will be wary due to policy uncertainty, higher interest rates, lower than expected March-quarter earnings and a falling rupee, he said.

The index remained in overbought zone on Monday for the third straight session.

The 14-day relative strength index ended at 71.547 on Monday, compared with Friday’s 74.472, Reuters data showed.

A level between 70 and 30 indicates the market is neutral.

Turnover stood at Rs. 613.9 million ($4.23 million), less than this year’s daily average of Rs. 786.9 million.

Shares in Commercial Leasing & Finance Plc fell 4.88%, while Aitken Spence Plc fell 3.19% and Lanka ORIX Leasing Company Plc fell 2.11%.