(DM) Stocks hit near 8-month closing low on foreign investor selling

REUTERS: Sri Lankan shares extended falls into a second session yesterday, closing at their lowest in nearly eight months, as foreign investors sold blue chips such as conglomerate John Keells Holdings PLC.

The Colombo Stock Index dropped 0.28 percent to 6,357.41, its lowest close since April 17. It fell 0.6 percent last week in its fifth consecutive weekly drop but has gained 2 percent so far this year. “Market is coming down on foreign selling on blue chips… maybe foreigners are moving away from equities ahead of the US Fed rate announcement and moving into fixed income (investments),” said First Capital Holdings Head of Research Dimantha Mathew.

“Local investors are not active and are on holiday mood,” he added. Shares of conglomerate John Keells fell 1.8 percent, Lanka ORIX Leasing Co PLC dropped 0.8 percent and Sri Lanka Telecom PLC declined 1.7 percent. Turnover was Rs.282.2 million, well below this year’s daily average of Rs.941 million.

Worries over a delay in local council polls and a lack of clarity over the budget and two other key policy measures weighed on sentiment, analysts said.

The Election Commission said on December 4 that the council polls would be held before February 17, amid concerns over political stability as coalition partners in President Maithripala Sirisena’s government had decided to contest separately in the council polls.

Source: Daily Mirror – Mirror Business

Image Courtesy: thebalance.com