Shares extend fall on foreign selling

REUTERS: Sri Lankan shares fell for a seventh straight session yesterday and closed at their lowest in nearly three weeks, as foreign investors turned net sellers for the first time in 14 sessions while local players stayed on the sidelines.

Foreign investors, who have been net buyers of Rs.2.7 billion worth shares so far this year, sold equities worth net Rs. 279.5 million (US$1.82 million) yesterday, especially banks and blue chips.

They net bought Rs.18.5 billion worth equities in 2017 and RS. 633.5 million in 2016.

The Colombo Stock Index ended 0.45 percent weaker at 6,410.11, its lowest close since Dec. 29. It has shed 2 percent in the past seven sessions.

“Market came down on some foreign selling. But turnover was pushed up by foreign trade,” said Atchuthan Srirangan, a senior research analyst with First Capital Holdings PLC.

Turnover stood at Rs.1.3 billion, higher than last year’s daily average of Rs. 915.3 million.

Shares in Commercial Bank of Ceylon Plc dropped 2.8 percent, Hemas Holdings Plc declined 4.1 percent, and Ceylon Cold Stores Plc fell 2.1 percent.