REUTERS: Sri Lanka’s benchmark index hit a more than one-month closing low yesterday, dragged down by large cap shares, as investors largely stayed on the sidelines amid confusion over falling bond yields, stockbrokers said.The benchmark Colombo stock index ended 0.09 percent lower at 6,501.89, its lowest close since Aug. 1.
Analysts said they expected shares to rise after results of the Central Bank’s weekly treasury bill auction on Wednesday showed yields fell between 23 and 34 basis points, with the benchmark 91-day treasury bill yield falling for the first time since July 8.
“Many investors are confused because while t-bill yields are coming down, the short term fixed-deposit rates offered by banks are very high,” said Prashan Fernando, COO at Acuity Stockbrokers.
Foreign investors net sold Rs.22.7 million ($156,444) worth of shares yesterday, the first time in seven sessions, extending the year-to-date net foreign outflow to Rs.2.77 billion worth of equities. Turnover stood at Rs.758.4 million, slightly higher than this year’s daily average of Rs.752.4 million.
Shares of Ceylon Tobacco Company Plc fell 0.50 percent, while Ceylon Cold Stores Plc ended 1.53 percent lower and John Keells Holdings Plc lost 0.67 percent.