S.Lankan shares extend losses on war, economy woes
By Shihar Aneez
COLOMBO, July 7 (Reuters) - Sri Lankan shares inched down 0.14 percent to a 5-½ month low on Monday, a ninth consecutive fall as worries about the economy and a long-running civil war with Tamil rebels kept investors out of the market.
The Colombo All-Share index .CSE fell 3.37 points to 2,401.17, its lowest close since Jan. 21. The market has fallen 10.8 percent from an 11-month high on April 23.
"Economic and war worries are the main reason for the fall," said Hussain Ghani, assistant director at Asia Securities.
"Investors are waiting for a market-pushing news, but unfortunately nothing has happened. If this situation continues, even better corporate results for the last quarter will also not boost the market."
Later this month, companies are due to start releasing their results for the quarter ended on June 30.
Sentiment on the corporate sector has been hit by poor economic data. Annual consumer price inflation rose to a 5-year high of 28.2 percent in June, while annual economic growth in the March quarter slowed to 6.2 percent from 7.6 percent in the previous quarter. See [ID:nCOL109662].
Leading fixed-line telephone operator, Sri Lanka Telecom SLTL.CM fell 1.75 percent to 42 rupees a share, calculated on a weighted average.
Top conglomerate by market capitalisation, John Keells Holdings JKH.CM closed 0.92 percent weaker at 108 rupees, and top listed private lender Commercial Bank of Ceylon COMB.CM fell 0.8 percent to 124 rupees.
Conglomerate Hayleys HAYL.CM closed 0.18 percent weaker at 136.75 rupees.
It accounted for 46 percent of the market's total turnover of 171.15 million rupees ($1.6 million), which was well below last year's daily average of 400 million rupees.
The rupee LKR= closed a touch stronger at 107.66/68 per dollar from Friday's close of 107.67/70, helped by some dollar sales by exporters.
The interbank lending rate CLIBOR rose to 13.650 percent from Friday's 13.372 percent. ($1=107.66 rupees) (Editing by John Mair)
