Shares fall for 3rd straight session on rising yields

20 January 2016 03:22 am - 0 - {{hitsCtrl.values.hits}}

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REUTERS: Sri Lankan shares fell for a third straight session yesterday to their lowest close in nearly 19 months due to rising yields and as investors sold their holdings to settle margin trading, brokers said.

The main stock index pared early losses and closed 0.65 percent, or 41.37 points, weaker at 6,283.24, its lowest close since June 27, 2014.

The stock market had shed about 8.9 percent this year through yesterday’s close due to foreign outflows, triggered by global concerns over China’s economy.

“Market is coming down because of overacting of local investors and the fall has little to do with the fundamentals,” said Yohan Samarakkody, head of research, SC Securities (Pvt) Ltd, adding margin calls were seen as local investors sold in response to foreign selling.

Foreign investors, who have sold a net Rs.2.35 billion worth of equities so far this year, bought a net Rs. 5.5 million ($38,194.44) yesterday.

Stockbrokers said some foreign funds have already started selling blue chips, including market heavyweight John Keells Holdings and lender Commercial Bank of Ceylon .

Turnover was at Rs.765.3 million ($5.31 million).

The yield on 91-day t-bills rose 40 basis points to a more than three-month high of 6.78 percent in three weekly auctions since the Dec. 30 monetary policy announcement.

Shares of Cargills (Ceylon) Plc fell 5.88 percent, Bukit Darah Plc dropped 5.48 percent and Hatton National Bank Plc declined 0.41 percent.
Sri Lanka Telecom Plc fell 1.23 percent, Commercial Bank of Ceylon Plc dropped 0.85 percent and John Keells shed 0.50 percent.

President’s remarks drag poultry share prices down
President Maithripala Sirisena’s recent statement discouraging animal slaughter and meat consumption yesterday took a toll on the share prices of poultry companies listed on the Colombo Stock Exchange.

The President was specifically talking about the slaughter of cattle for meat at a Thaipongal ceremony he attended at a school in Payagala, Kalutara.

The President was specifically talking about the slaughter of cattle for meat at a Thaipongal ceremony he attended at a school in Payagala, Kalutara.
He even said he would instruct the Finance Ministry to import beef to curb cattle slaughter in Sri Lanka.
However, he said as a non-meat eater, he did not support the killing of any animal.
Bairaha Farms PLC share yesterday closed at Rs.163.40, down from Monday’s close of Rs.165.20 while Three Acre Farms PLC share closed Rs.96.00, against the previous day’s close 97.50.
The Grain Elevators PLC share however managed to close at Rs.73.90, up from Monday’s close of Rs.72.20, despite the share hitting low of Rs.62 during yesterday’s trading.

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Shares fall for 3rd straight session on rising yields

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