Stocks fall from near 7-wk closing high; earnings eyed

REUTERS: Sri Lankan stocks fell yesterday from their near seven-week closing high in the previous session as investors stayed on the sidelines ahead of financial results of blue chips like Commercial Bank of Ceylon PLC.

The main stock index ended lower 0.2 percent, or 14.10 points, at 7,147.86, snapping a seven-session rally. It had closed at its highest since June 1 on Friday as hopes of political stability after the August 17 parliamentary polls lifted sentiment.

Foreign investors sold a net Rs.232.1 million worth of equities yesterday, extending the year-to-date net foreign outflow to Rs.994.98 million.
“Most of the investors were on the sideline today. Investors are awaiting the earnings,” said First Capital Equities (Pvt.) Ltd Research Manager Dimantha Mathew.

Last Tuesday, Sri Lankan President Maithripala Sirisena criticised a comeback bid by Mahinda Rajapaksa, the rival he beat in elections last January, and his own allies for backing him to become prime minister.

Analysts see Sirisena’s statement as a step towards strengthening his grip and one that is likely to help the ruling coalition win.

Turnover stood at Rs.646.8 million yesterday, the lowest since July 14 and well below this year’s daily average of Rs.1.06 billion.

Shares in the nation’s biggest listed lender, Commercial Bank of Ceylon, fell 0.83 percent, while Aitken Spence Hotel Holdings PLC dropped 4.15 percent.