Shares fall to two-week closing low; floods weigh

REUTERS: Sri Lankan shares fell yesterday in dull trade to close at their lowest in two weeks, as investors booked profits in heavyweights such as John Keells Holdings PLC and Commercial Bank PLC while floods and landslides that hit the island nation weighed on sentiment.
Sri Lankan authorities yesterday warned of more rains and landslides as a cyclone grew in the Bay of Bengal, while floods killed 164 people following the heaviest rainfall in 14 years.

The Colombo stock index ended 0.27 percent weaker at 6,679.46, at its lowest close since May 15. The bourse fell 0.47 percent last week recording its first weekly fall in nine weeks. Turnover yesterday stood at Rs.270.6 million, well below this year’s daily average of Rs.895.9 million.
Foreign investors bought shares worth Rs.57.1 million on a net basis, extending the year-to-date net foreign inflow to Rs.19.46 billion worth of equities.
“Profit-taking that started last week is continuing. The market is coming down on low volumes,” said First Capital Holdings PLC Head of Research Dimantha Mathew.
“The floods might impact the earnings of companies, though there are no news of any of the factories of listed companies affected from floods. Investors are waiting to see the real impact of the floods.”
Shares in conglomerate John Keells Holdings PLC and Nestle Lanka PLC fell 0.9 percent each, while biggest listed lender Commercial Bank of Ceylon PLC fell 
1.2 percent.