Tuesday, 31 March 2015 20:36
COLOMBO: Sri Lankan shares rose on Tuesday, recovering from a more than eight-month closing low hit in the previous session and snapping a six-session losing streak, due to window dressing ahead of the quarter-end, though political uncertainty weighed on sentiment, brokers said.
The main stock index ended 0.56 percent, or 37.91 points, firmer at 6,820.34, after closing at its lowest level since July 24 on Monday. It lost 7.31 percent in the 21 sessions through Monday.
“Being the last day of the quarter, there was a bit of window dressing,” said Dimantha Mathew, research manager at First Capital Equities (Pvt) Ltd.
Analysts expect the market to continue its negative trend with low activities through mid-April ahead of a long traditional Sinhala-Tamil New year holiday and amid political uncertainty.
Shares in Carson Cumberbatch Plc rose 0.38 percent, while Ceylinco Insurance Plc rose 9.07 percent in thin volume.
Market heavyweight John Keells Holdings Plc, which hit a 32-month low on Monday, rose 1.63 percent on Tuesday.
The day’s turnover was 665.8 million rupees ($ 3.44 million), more than half of this year’s daily average of 1.19 billion rupees.
Foreign investors were net sellers for the seventh straight session. They sold a net 72.1 million rupees worth of shares on Tuesday, extending the net foreign selling in the past seven sessions to 445.8 million rupees worth shares. But they have been net buyers of 2.91 billion rupees so far this year.
Analysts said concerns that the government’s decision-making process would slow down 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.
Copyright Reuters, 2015
