Monday, 22 April 2024
Sri Lankan share index falls below key 6,000 support level

Sri Lankan share index falls below key 6,000 support level

Sri Lankan share index fell on Monday, snapping a two-session gaining streak as it declined below a key support level of 6,000 points, with foreign investors exiting the island nation's risk assets, brokers said.

The benchmark share index fell 0.67 percent or 40.52 points to 5,979.43.

The index had gained 2.7 percent in the last two sessions through Friday due to a technical rebound.

Investors prefered fixed interest rate bearing assets over shares due to a rise in the yields on treasury bills, which are hovering at two-year highs, in tandem with the central bank's unexpected interest rates hike in mid-February, dealers said.

"Economy is also fragile. Still we are at a critical stage, so there is not a lot of buying," said Dimantha Mathew, head of research, First Capital Equities (Pvt) Ltd.

"Only high risk takers are buying. Retailers, institutions and others are still out of the market and we expect the market to trade between 5,800 and 6,000 points in short term."

Foreign investors were net sellers for a second striaght session, unwinding 155.9 million rupees ($1.08 million) worth of shares on Monday, extending the net foreign outflow so far this year to 418.7 million rupees worth of shares.

Turnover stood at 719.3 million rupees, below this year's daily average of 775.3 million rupees.

Shares in conglomerate John Keells Holdings Plc fell 1.95 percent, while Hatton National Bank Plc declined 2.04 percent. ($1 = 144.8000 Sri Lankan rupees)


Leave a comment

Make sure you enter all the required information, indicated by an asterisk (*). HTML code is not allowed.