Thursday, 26 March 2015 20:34
COLOMBO: Sri Lankan shares fell for a fourth straight session on Thursday and closed at their lowest in more than seven months as investors sold stakes to settle margin trading ahead of quarter-end, while political uncertainty also weighed on sentiment.
The main stock index ended 0.72 percent, or 50.20 points, weaker at 6,922.83, its lowest close since Aug. 8 and further moving away from the key psychological support level of 7,000. It has lost 5.39 percent in the past 19 sessions.
“The trend will continue until there is political uncertainty. We see the next resistance level at 6,800,” a stockbroker said on condition of anonymity.
Analysts said concerns that the government’s decision-making process would slow down, also weighed on sentiment after President Maithripala Sirisena formed a national government incorporating the main opposition party in a bid to push through reforms and preserve political stability.
The market also shrugged off a fall in t-bill yields at a weekly auction on Wednesday, brokers said.
Yields on t-bills fell between 17 and 19 basis points, after they dropped 31 to 44 bps last week.
The central bank said on March 18 that the low-interest rate environment was expected to continue benefiting from lower inflation while keeping policy rates steady.
Shares of the country’s biggest listed lender, Commercial Bank of Ceylon Plc, fell 2.27 percent, while Ceylon Brewery Plc dropped 22.12 percent, the biggest single-day drop since May 31, 2012. Conglomerate John Keells Holdings Plc fell 1.27 percent.
The day’s turnover was 1.1 billion rupees ($ 8.28 million), lower than this year’s daily average of 1.22 billion rupees.
Foreign investors sold a net 210.5 million rupees worth of shares. But they have been net buyers of 3.12 billion rupees so far this year.
Copyright Reuters, 2015
