COLOMBO, March 8 Sri Lankan shares fell to their
lowest close in one month on Wednesday, led by financial and
telecommunication stocks as investor sentiment continued to
remain low on concerns about rising interest rates.
Foreign investors were net buyers for the sixth straight
session, purchasing shares worth 154.8 million rupees ($1.02
million), and extending the year-to-date net foreign inflow to
1.88 billion rupees worth of equities.
Foreign trading accounted for more than 50 percent of the
day's turnover of 1.06 billion rupees. This year, the daily
average has been 685.5 million rupees.
"Foreign investors are buying stocks in which they see some
value after prices have come down," said Hussain Gani, deputy
CEO at Softlogic Stockbrokers.
The Colombo stock index ended down 0.21 percent at
6,095.07. It shed 0.6 percent last week in its second straight
Traders said there were concerns after the International
Monetary Fund urged Sri Lanka's central bank to be ready to
tighten monetary policy if credit growth or inflation do not
Shares in Commercial Bank of Ceylon Plc, the
country's biggest listed lender, fell 1.27 percent while Dialog
Axiata Plc declined 0.89 percent.
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.
($1 = 151.3000 Sri Lankan rupees)
(Reporting by Ranga Sirilal and Shihar Aneez; Editing by