COLOMBO, MARCH 27
(Reuters) – Sri Lankan shares fell for a fifth straight session on Friday and closed at their lowest in practically eight months as investors sold their stocks to settle margin trading ahead of quarter-end, whilst political worries also weighed on sentiment.
The main stock index ended .71 percent, or 49.31 points, weaker at six,873.52, its lowest close given that Aug. six and further moving away from the essential psychological assistance level of 7,000. It has lost six.07 percent in the previous 20 sessions.
“The marketplace fell across the board due to margin calls and month-end settlement selling stress,” said Dimantha Mathew, research manager at First Capital Equities (Pvt) Ltd.
Analysts count on the subsequent support level at six,800.
Shares of the country’s best mobile telephone operator, Dialog Axiata Plc, fell .92 %, whilst conglomerate John Keells Holdings Plc dropped .69 percent.
Shares of the country’s biggest listed lender, Commercial Bank of Ceylon Plc, fell .71 %.
The day’s turnover was 447 million rupees ($ 8.28 million), much less than half of this year’s daily average of 1.21 billion rupees.
Foreign investors sold a net 91.5 million rupees worth of shares. But they have been net buyers of three.12 billion rupees so far this year.
Analysts mentioned issues that the government’s decision-producing approach would slow down, also weighed on sentiment following President Maithripala Sirisena formed a national government incorporating the main opposition party in a bid to push by way of reforms and preserve political stability.