FIRST CAPITAL’S ATCHUTHAN SRIRANGAN SPEAKS TO REUTERS
Tue Jun 6, 2017
Sri Lankan shares fell to a one-week closing low on Tuesday on profit-booking in blue-chip shares such as John Keells Holdings Plc while investors assessed the impact of the recent floods on exchange rate and inflation.
Analysts said it was also too early to evaluate the real impact of the floods and landslides caused by the worst torrential rains in 14 years, killing over 200 people and devastating crops.
The Colombo stock index ended 0.1 percent weaker at 6,669.53, its lowest close since May 30.
Turnover was 468.3 million rupees ($3.07 million), around half of this year’s daily average of 889.6 million rupees.
Inflation could rise in the short term, especially due to crop damage and difficulties in distributing fresh food produce and staple food items, analysts said.
“Some profit-taking is taking place. It’s a small pullback which is good for the future run,” said Atchuthan Srirangan, a senior research analyst at First Capital Holdings PLC.
Foreign investors were net buyers of 134.4 million rupees worth of shares, extending the year-to-date net foreign inflow to 19.78 billion rupees.
Shares of conglomerate John Keells Holdings Plc fell 0.82 percent, while Melstacorp Plc declined 1.36 percent and Dialog Axiata Plc shed 0.84 percent. ($1 = 152.5000 Sri Lankan rupees) (Reporting by Ranga Sirilal and Shihar Aneez; Editing by Sunil Nair)
The company operates in the capital markets of Sri Lanka in government securities – treasury bills and bonds, stock brokering and share market investments, asset management, private wealth management, retirement planning, personal financial planning, unit trust, margin trading, capital market research, trustee services, corporate finance advisory services including corporate debt structuring (debentures, trust certificates, commercial papers), valuations, restructuring, mergers and acquisitions, initial public offerings (IPOs) and project advisory.
The First Capital Group consists of First Capital Treasuries PLC, First Capital Limited, First Capital Markets Limited, First Capital Asset Management Limited and First Capital Equities (Private) Limited covering Colombo, Negombo, Matara, Kandy and Kurunegala.<