Shares end flat as policy uncertainty continues to weigh

REUTERS: Sri Lankan shares were little changed yesterday after hitting a nine-month low last week as uncertainty over the government’s monetary and budget policies continued to weigh on the market.
But foreign investors were net buyers yesterday for a second session after five straight sessions of net-selling through Thursday. They bought a net Rs.152.7 million worth of equities yesterday, the highest since December 8. However, foreign investors have been net sellers to the tune of Rs.817.03 million so far this year.
The Colombo stock index ended 0.04 percent up at 6,155.52, slightly above the lowest since April hit on Thursday. Last week the index fell 0.64 percent and was down 9.7 percent for 2016, its second straight annual decline.
The day’s turnover was at Rs.843.6 million.

“Net foreign inflow is a good sign and it will help regain the lost confidence,” said First Capital Equities (Pvt.) Ltd Head of Research Dimantha Mathew.
Yields on treasury bill auctions rose five to six basis points at a weekly auction on Wednesday, a day after the Central Bank governor signalled reduced intervention to defend the currency.
Shares in Hemas Holdings PLC rose 1.9 percent, while Teejay Lanka PLC gained 3.69 percent and Ceylon Tobacco Company PLC added 0.33 percent.