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Sri Lankan Shares Fall on Profit-taking in Large Caps


Wed May 3, 2017

Sri Lankan shares fell on Wednesday, retreating further from a near 11-month closing high hit on Friday, as investors booked profits in large caps such as Ceylon Tobacco Co Plc and conglomerate John Keells Holdings Plc.

The Colombo stock index ended down 0.67 percent at 6,563.85 with Ceylon Tobacco shedding 1.7 percent and John Keells declining 0.9 percent. Meanwhile, Selinsing Plc dropped 23.5 percent with 235 shares changing hands.

“After a long time, we saw significant profit-taking in some counters,” said Dimantha Mathew, head of research, First Capital Holdings PLC. “The positive sign is that foreign interest is still there.”

Analysts said the market will continue to be bullish amid some profit-taking.

Turnover was 608.04 million rupees ($4.00 million), less than this year’s daily average of 898.8 million rupees.

Foreign investors net bought shares worth 60.1 million rupees, extending the year-to-date net foreign buying to 16.46 billion rupees worth of equities.

They bought a net 14 billion rupees worth of equities in the last 28 sessions with the bourse seeing inflows in 27 sessions.

($1 = 152.1000 Sri Lankan rupees)

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Subhranshu Sahu)

The comments on this report are provided by the Capital Markets Research Unit of First Capital Holdings PLC an investment bank in Sri Lanka.

The company operates in the capital markets of Sri Lanka in government securities – treasury bills and bonds, stock brokering and share market investments, asset management, private wealth management,  retirement planning, personal financial planning, unit trust, margin trading, capital market research, trustee services, corporate finance advisory services including corporate debt structuring (debentures, trust certificates, commercial papers), valuations, restructuring, mergers and acquisitions, initial public offerings (IPOs) and project advisory. 

The First Capital Group consists of First Capital Treasuries PLC, First Capital Limited, First Capital Markets Limited, First Capital Asset Management Limited and First Capital Equities (Private) Limited covering Colombo, Negombo, Matara, Kandy and Kurunegala.