stock market sri lanka

Sri Lankan stocks slip to 8-month closing low

DIMANTHA MATHEW, HEAD OF RESEARCH AT FIRST CAPITAL HOLDINGS PLC, SPEAKS TO REUTERS

DECEMBER 15, 2017

COLOMBO, Dec 15 (Reuters) – Sri Lankan shares slipped to their lowest close in eight months on Friday as investors offloaded telecom and plantation stocks.

The Colombo Stock Index ended 0.08 percent weaker at 6,352.10, its lowest close since April 17. It dropped 0.4 percent this week, in its sixth consecutive weekly decline.

“The downtrend is continuing with the selling in blue chips,” said Dimantha Mathew, head of research at First Capital Holdings, adding that was a bit of a worrying sign for the market.

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.

“The Russian restrictions on tea could pose a threat to long-term tea prices and it could impact the earnings of plantation companies,” said Mathew.

Turnover was 345.4 million rupees ($2.25 million), the lowest since Dec.9, and well below this year’s daily average of 938.9 million rupees.

Foreign investors were net buyers of 180.1 million rupees worth of shares on Friday, extending the year-to-date net foreign inflow to 18.3 billion rupees worth of shares.

Shares of Sri Lanka Telecom Plc fell 1.5 percent, Hemas Holdings Plc ended 0.9 percent weaker and Asian Hotels and Properties Plc ended down 2 percent. ($1 = 153.2000 Sri Lankan rupees) (Reporting by Ranga Sirilal; Editing by Subhranshu Sahu)

 

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.