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Sri Lankan stocks end at over 1-wk low; Teejay drags index


May 3, 2018

COLOMBO, May 2 (Reuters) – Sri Lankan shares ended at their lowest in over a week on Wednesday led by textile company Teejay Lanka due to a fall in the rupee and on higher global cotton prices, brokers said.

The Colombo stock index ended down 0.23 percent at 6,518.64, its lowest since April 24. The index lost 0.15 percent last week.

Teejay closed down 6.3 percent.

“Teejay shares were hit by both rupee depreciation and higher cotton prices in the world market,” said Atchuthan Srirangan, assistant manager-research at First Capital Holdings PLC.

Distilleries Company of Sri Lanka fell 0.9 percent.

The Sri Lankan rupee hit a fresh low on Wednesday on importer demand for the U.S. currency, dealers said, but recovered after the central bank intervened in the market.

Fitch Ratings said on Thursday that recent political developments in Sri Lanka have created some uncertainty over reform momentum and fiscal consolidation, and prolonged upheaval could undermine investor confidence ahead of large external debt maturities in 2019-22.

Turnover stood at 612.8 million rupees ($3.89 million), less than this year’s daily average of around 1.1 billion rupees.

Foreign investors sold a net 18.3 million rupees worth of equities on Wednesday, extending the net foreign outflow to 669.1 million rupees worth of equities so far this year.