Reuters: Shares fell for a third straight session on Tuesday 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%, or 41.37 points, weaker at 6,283.24, its lowest close since 27 June 2014.
The stock market had shed about 8.9% this year through Tuesday’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 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) on Tuesday.
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% in three weekly auctions since the 30 December monetary policy announcement.
Shares of Cargills (Ceylon) Plc fell 5.88%, Bukit Darah Plc BUKI.CM dropped 5.48% and Hatton National Bank Plc HNB.CM declined 0.41%.
Sri Lanka Telecom Plc fell 1.23%, Commercial Bank of Ceylon Plc dropped 0.85% and John Keells shed 0.50%
Source: http://www.ft.lk/article/520038/Shares-fall-for-3rd-straight-session-on-rising-yields