Stock market closes at over 3-week low; turnover up on block deals

Reuters - Shares on Friday hit their lowest close in more than three weeks, as investors sold telecom shares and on concerns over rising interest rates.

The Colombo stock index ended down 0.42% at 6,101.51, its lowest close since 9 February. The bourse dropped 0.6% on the week, in its second straight weekly decline.

Foreign investors were net buyers of Rs. 70.8 million ($468,563.86) worth of shares, extending the year-to-date net foreign inflow to 963.03 million rupees worth of equities.

Turnover was Rs. 1.21 billion, the highest since 28 February and nearly double this year’s daily average of Rs. 679.4 million.

“Even today the crossings pushed the turnover. The foreign inflow is continuing, which is a good thing,” said, First Capital Equities Ltd Head of Research Dimantha Mathew.

“Foreign participation is high and local investors are completely staying out of the market.”

Conglomerate John Keells Holdings PLC, which accounted for 72.5% of the day’s turnover on block trade, ended steady.

Sri Lanka Telecom PLC slid 5.44%, while Dialog Axiata PLC declined 3.48%.

Yields on treasury bills have risen to a more-than-four-year high since October, while the Central Bank has kept key policy rates on hold.