Shares slip to 1-week closing low on foreign selling

(Colombo) Reuters: Sri Lankan shares fell to one-week closing low yesterday as foreign investors sold blue chips such as conglomerate John Keells Holdings PLC.

The Colombo stock index ended 0.35 percent weaker at 6,096.54, its lowest close since September 3. It rose 0.6 percent last week in its third straight weekly gain.Turnover was Rs.615.9 million, less than this year’s daily average of Rs.795.6 million.

“Today also, foreign selling was there and it impacted the market. Foreigners are exiting with the dollar strengthening,” said Atchuthan Srirangan, Assistant Manager - Research, First Capital Holdings PLC.

“Local investors are worried over continued foreign selling on the back of dollar strengthening globally and they are on the sidelines.”

Analysts said investors also waited for cues from the national budget which the government is set to unveil in November.
Foreign investors sold a net Rs.112.1 million of shares on Monday, extending the year-to-date net foreign outflow to Rs.4.4 billion worth of shares.

Shares of Distillers Company of Sri Lanka PLC fell 3.1 percent, while conglomerate John Keells Holdings ended 0.7 percent down and AIA Insurance Lanka PLC lost 4.4 percent.