Investment in Sri Lanka

Sri Lankan shares fall to 1-mth low; Chevron Lubricants leads

FIRST CAPITAL’S HEAD OF RESEARCH DIMANTHA MATHEW SPEAKS TO REUTERS

JULY 19, 2017

COLOMBO, July 19 (Reuters) – Sri Lankan shares fell on Wednesday to a one-month closing low, marking their sixth losing session in seven, led by the decline in Chevron Lubricants Lanka after it reported a drop in the June-quarter earnings.

Chevron Lubricants stock lost 6.3 percent on Wednesday after the company reported a 34 percent fall in its second-quarter profit.

The Colombo stock index ended 0.59 percent lower at 6,695.23, its lowest since June 16, marking a third straight losing session.

“There was selling pressure after the Chevron Lubricants’ earnings. Some other blue chips also were under selling pressure,” said Dimantha Mathew, head of research, First Capital Holdings.

However, foreign investors continued to buy stocks. They were net buyers of shares worth 113.5 million rupees ($738,932)on Tuesday, extending the year-to-date net foreign inflow to 24.4 billion rupees worth of equities.

Turnover was 781.6 million rupees, less than this year’s daily average of 912.8 million rupees.

Shares of conglomerate Hemas Holdings fell 3.6 percent, while telecom company Dialog Axiata fell 1.7 percent. ($1 = 153.6000 Sri Lankan rupees) (Reporting by Shihar Aneez; Editing by Amrutha Gayathri)

The comments on this report are provided by the Capital Markets Research Unit of First Capital Holdings PLC an investment bank in Sri Lanka.

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.<