Tuesday, 25 August 2015 16:56
COLOMBO: Sri Lankan shares fell more than 1 percent to hit a near five-week closing low on Tuesday as foreign investors sold off risky assets on fears of a China-led global economic slowdown and panic selling by retail investors for month-end settlements.
The main stock index ended down 1.36 percent, or 99.51 points, at 7,231.58, its lowest close since July 23.
The index has fallen 3.2 percent in the last two sessions, mainly due to a global selloff. Turnover stood at 1.44 billion ($ 10.73 million), above this year’s daily average of 1.16 billion rupees.
“With the huge fall yesterday there was some panic selling,” said Dimantha Mathew, a research manager at First Capital Equities (Pvt) Ltd. “The market will be slow, dull and in the red this week.”
Mathew expects the market to recover in September. Foreign investors were net sellers of 199.7 million rupees worth of shares on Tuesday, extending the year to date net foreign outflow to 1.53 billion rupees.
Shares in conglomerate John Keells Holdings Plc fell 2.12 percent, while Nestle Lanka Plc fell 2.19 percent, dragging the index down.
