Shares fall on profit-taking in banks

REUTERS: Sri Lankan shares fell in thin trade yesterday on profit-booking in banking stocks while investors assessed the impact of recent deadly floods on exchange rate and inflation.
Analysts said it is too early to evaluate the real impact of the floods and landslides caused by the worst torrential rains in 14 years, killing over 200 people and devastating crops.

The Colombo stock index ended 0.19 percent weaker at 6,676.32, its lowest close since May 31. The bourse fell 0.13 percent last week, its second straight weekly drop.
Turnover was Rs.395.4 million, less than half of this year’s daily average of Rs.893.8 million.
Inflation could rise in the short term, especially due to crop damages and difficulties in distributing fresh food produce and staple food items, analysts said.
“It was a quiet market today. We expect the market to consolidate at these levels until we see some strong foreign buying coming into the market,” said Softlogic Stockbrokers Deputy CEO Hussain Gani.
Foreign investors were net buyers of Rs.101.8 million worth of shares, extending the year-to-date net foreign inflow to Rs.19.65 billion.
Shares of Nanda Investment PLC fell 16.46 percent, Lanka ORIX Leasing Co PLC declined 1.86 percent, Ceylon Cold Stores PLC dropped 1.48 percent and Sri Lanka Telecom PLC shed 1.52 percent.