Stock market falls to near one-month low

Reuters: Sri Lanka’s benchmark index ended lower in lean trading on Wednesday, dragged by blue chips to a near one-month closing low, as investors largely stayed on the sidelines, stockbrokers said.

The benchmark Colombo stock index ended 0.25% lower at 6,507.98, its lowest since 8 August. The bourse had fallen 0.2% last week, posting its second straight weekly loss.

Foreign investors, who have sold shares worth net Rs. 2.74 billion ($18.86 million) so far this year, were net buyers of shares worth Rs. 32.9 million on Wednesday.

Turnover stood at Rs. 500.4 million rupees, around two-third of this year’s daily average of 752.4 million rupees.

“It was a dull day. Today, it was mainly the retail activity and we didn’t see aggressive buying or selling in the market even though there were opportunities in the market,” said SC Securities Ltd Head of Research Yohan Samarakkody.

“Market is stagnant and investors are awaiting some direction.”

After the market close, the central bank’s weekly Treasury bill auction results showed rates fell 23 to 34 basis points. The benchmark 91-day Treasury bill rates fell for the first time since 8 July.

Dealers said the reduction in rates will help attract investors into stocks.

The fall was led by shares of Sri Lanka Telecom Plc and Distillers Sri Lanka Plc, which fell as much as 1.9 % and 2.5%, respectively.