Stocks at 6-week closing low on profit taking; earnings awaited
Reuters: Stocks fell for the fourth straight session on Tuesday to hit a six-week closing low, a day after the Government announced it would hold a presidential election in January, nearly two years ahead of schedule. Most local investors offloaded positions to cut losses, dealers said.
President Mahinda Rajapaksa is expected to run for a third six-year term. The poll schedule announcement came amid signs Rajapaksa’s popularity is fading after accusations that his party is abusing power. Analysts said investors were waiting for cues from the 2015 Budget scheduled for Friday and a raft of September quarterly earnings expected next week.
Sri Lanka’s main stock index fell 0.72%, or 52.29 points, to 7,161.16, its lowest since 9 September.
“Some people are taking profits and there is no strong local buying. Some local retail investors also sold their shares to cut losses as the index has been on a downward trend,” said Danushka Samarasinghe, COO at Softlogic Stockbrokers.
Stockbrokers said trading in local shares may be volatile due to the revised poll schedule and a possible bottoming out of interest rates.
The day’s turnover was Rs. 897.4 million ($ 6.87 million), less than this year’s daily average of Rs. 1.36 billion.
Foreign investors bought a net Rs. 165.1 million worth of shares on Tuesday, extending the year-to-date net foreign inflow to Rs. 10.3 billion, exchange data showed.
The country’s biggest listed lender Commercial Bank of Ceylon Plc, which led the overall fall of the index, lost 1.43% at Rs. 158.60.
Shares in conglomerate John Keells Holdings fell 0.20% to Rs. 246.50, while Dialog Axiata Plc ended 0.83% down at Rs. 12.
Both the currency and stock markets will be closed for a holiday on Wednesday. Trading will resume on Thursday.
Rupee forwards weaker on importer dollar demand; CB curbs fall
Reuters: The rupee forwards ended slightly weaker on Tuesday due to dollar demand from importers, but dealers said the Central Bank’s intervention via moral suasion prevented a sharp fall in the local currency. Dealers also said the Central Bank persuaded banks not to trade the spot-next below 130.90 after capping it at 130.85 in early trade. Central Bank officials were not immediately available for comment. |