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Sri Lankan shares fall for 4th straight week, end below 6,500
August 11, 2017 / 11:41 AM / a month ago

Sri Lankan shares fall for 4th straight week, end below 6,500

COLOMBO, Aug 11 (Reuters) - Sri Lankan shares fell to a more than three-and-a-half month low and breached the psychological level of 6,500 points on Friday, dragged down by diversified and beverage shares.

The market has ended lower in 10 out of the last 11 sessions through Friday, even as yields on short-term government securities fell over the past two weeks.

The Colombo stock index fell 0.36 percent, or 23.63 points, to 6,492.69, its lowest close since April 19. The bourse fell 1.2 percent for the week, its fourth straight weekly fall.

“Market is coming down and there is very little foreign activity,” said Hussain Gani, deputy CEO at Softlogic Stockbrokers.

“With the market dipping, investors are waiting for some direction.”

Foreign investors net bought shares worth 4.9 million rupees (about $32,026) on Friday, extending their year-to-date net inflow to 26.7 billion rupees.

Turnover stood at 396 million rupees, less than half of this year’s daily average of around 877.3 million rupees.

Shares of Hemas Holdings Plc fell 3.5 percent, while Ceylinco Insurance Plc dropped 5 percent. Colombo Cold Stores Plc ended 1.5 percent weaker, Sampath Bank Plc ended 1.4 percent down and conglomerate John Keells Holdings Plc fell 0.5 percent.

Analysts expect equities to reverse the downtrend, helped by a fall in government bond yields.

Short-term treasury-bond yields fell between 10 basis points (bps) and 16 bps at a weekly auction on Wednesday, while the yields on a 59-month bond dropped by 99 bps and that on a 118-month bond fell by 78 bps at the last week auction.

$1 = 153.0000 Sri Lankan rupees Reporting by Ranga Sirilal and Shihar Aneez; Editing by Vyas Mohan

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