Shares end lower on profit-taking

Wednesday, 2 September 2015 00:00 - - {{hitsCtrl.values.hits}}

Reuters: Shares closed lower for a second session on Tuesday on profit-taking, while investors waited for direction on interest rates from a weekly auction of Government securities, stock brokers said.

The Central Bank late on Monday kept its main interest rates steady at record lows as expected, with inflation seen lower in the next few months, and said it was keen to avoid any excessive growth in credit. Analysts said investors were waiting for direction on market interest rates from a weekly T-bill auction scheduled for Wednesday after the Central Bank held the policy rates steady.

The country’s main stock index ended 0.11% lower, or down 8.19 points, at 7,298.75, not far off its lowest close since 23 July hit on 25 August.

Foreign investors were net sellers of Rs. 96.7 million ($718,959.11) worth of shares on Tuesday, extending the year to date net foreign outflow to Rs. 3.45 billion.

Turnover stood at Rs. 732.2 million, less than this year’s daily average of Rs. 1.16 billion, as investors awaited President Maithripala Sirisena’s speech at the first Parliament session on Wednesday.

Shares in DFCC Bank Plc fell 2.51% while Commercial Bank of Ceylon Plc COMB.CM fell 0.80%, dragging down the overall index.

Shares in conglomerate John Keells Holdings JKH.CM fell 0.33% while Ceylon Tobacco Company Plc CTC.CM fell 0.36%.