Shares drop in dull trade; banks top drag

REUTERS: Sri Lankan shares declined yesterday, marking their eighth session of fall in nine, as investors sold banking stocks in dull trade.

The Colombo Stock index ended 0.34 percent weaker at 6,421.40. On Thursday, it closed at its lowest since December 29.

The bourse has shed 2 percent in the past nine sessions, and dropped 0.47 percent last week, recording its second straight weekly fall.

“The market was quiet till late. We saw some activities in the latter part of the day,” said Softlogic Stockbrokers Deputy CEO Hussain Gani.

“There were some selling in banks which brought the market down,” he said, adding that the investors were waiting to see clarity on the political front from a local election, which will be held on February 10 after a long delay.

Turnover stood at Rs.460.7 billion, half of last year’s daily average of Rs.915.3 million.

However, foreign investors bought a net Rs.196.6 million worth of shares yesterday, extending the year-to-date net foreign inflow so far this year to Rs.2.9 billion worth of shares.

They bought equities worth Rs.18.5 billion last year and Rs.633.5 million in 2016.

After market hours on Friday, diversified company Hemas Holdings PLC said it will acquire 75.1 percent of stationery manufacturer Atlas Axillia Co (Pvt.) Ltd for Rs.5.7 billion. Hemas fell 5.4 percent yesterday.

Shares in Lanka ORIX Leasing Co PLC dropped 3.5 percent, while Hatton National Bank PLC declined 1.1 percent.