stock market sri lanka

Sri Lankan stocks hit over 8-month closing low

ATCHUTHAN SRIRANGAN, SENIOR RESEARCH ANALYST AT FIRST CAPITAL HOLDINGS PLC, SPEAKS TO REUTERS

DECEMBER 18, 2017

COLOMBO, Dec 18 (Reuters) – Sri Lankan shares fell for a second straight session on Monday to hit their lowest close in more than eight months as investors offloaded plantation and telecom stocks.

The Colombo Stock Index ended 0.09 percent weaker at 6,346.70, its lowest close since April 11. It lost 0.4 percent last week, its sixth consecutive weekly decline.

“It’s yet another dull day and we don’t have any positive news to boost the market,” said Atchuthan Srirangan, senior research analyst at First Capital Holdings PLC.

Plantation stocks came under pressure after the Russian agricultural safety watchdog said on Thursday that the country will place temporary restrictions on imports of all agricultural products from Sri Lanka, including tea, from Dec. 18.

Analysts said the Russian restrictions on tea could pose a threat to long-term tea prices and it could impact the earnings of plantation companies.

Turnover was 233 million rupees ($1.52 million), the lowest since Sept.25, and well below this year’s daily average of 935.9 million rupees.

Foreign investors were net buyers of 71.8 million rupees worth of shares on Monday, extending their year-to-date net equity purchases to 18.4 billion rupees.

Shares of Hemas Holdings Plc ended 1.2 percent lower, while Hatton National Bank Plc fell 0.4 percent and Sri Lanka Telecom Plc lost 1.4 percent. ($1 = 153.1500 Sri Lankan rupees) (Reporting by Ranga Sirilal; Editing by Vyas Mohan)

 

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.

First Capital is an investment bank providing a full range of financial advisory and services. The Company’s research deliver heightened perspective in fundamental research aiding Share Market Investment in Sri Lanka. The Company’s best-in-class research team provide dynamic reports including economic reviews and proprietary research, encompassing fundamental, quantitative and technical analysis. With fundamental research coverage of 62 listed securities (reflecting approximately 65% market capitalization) across 15 sectors in Share Market Investment in Sri Lanka.