stock market sri lanka

Sri Lankan shares hit near one-week closing low on profit-taking

FIRST CAPITAL’S SENIOR RESEARCH ANALYST ATCHUTHAN SRIRANGAN SPEAKS TO REUTERS

OCTOBER 17, 2017

COLOMBO, Oct 17 (Reuters) – Sri Lankan shares ended down for a second straight session on Tuesday, slipping further from their highest close in more than 10 weeks hit last week, with investors booking profits in telecom stocks while block deals boosted the turnover, brokers said.

The Colombo stock index ended 0.36 percent weaker at 6,572.05, its lowest close since Oct. 11. Last week, the bourse rose 1.6 percent, posting its fifth straight weekly gain.

“Today, we observed that profit-taking was still on,” said Atchuthan Srirangan, senior research analyst, First Capital Holdings PLC.

“The turnover is boosted by some big deals. We saw a foreign selling of over 1 billion rupees in East West Properties which might trigger more foreign selling in future.”

Shares of Dialog Axiata Plc ended 3.1 percent weaker, Sri Lanka Telecom Plc finished 5.4 percent down, while Lion Brewery Plc closed down 4.7 percent.

Shares of East West Properties Plc, which accounted for 58 percent of Tuesday’s turnover and saw 88 million shares of foreign selling, ended 4 percent up.

Turnover was 1.9 billion rupees ($12.38 million), more than double of this year’s daily average of 939 million rupees.

Foreign investors were net sellers of shares worth 1.1 billion rupees on Tuesday. They have, however, net bought 19.1 billion rupees worth of shares so far this year.

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 offering services as Stock Brokers in Sri Lanka. The Company acts as a conduit between retail and institutional clients and the secondary market of the Colombo Stock Exchange. First Capital’s best-in-class research team provide a series of actionable trade recommendations, daily and periodic market commentaries and publications for Stock Brokers in Sri Lanka.