COLOMBO May 13 Sri Lanka stocks on Tuesday fell
from an 11-month closing high, ending a four straight-session
winning streak, as investors booked profits, but market
sentiment remained positive on lower interest rates and
continued foreign inflows.
The main stock index fell 0.29 percent, or 18.20
points, to 6,284.96, slipping from its highest close since June
It rose 1.24 percent in the last four sessions through
Monday, while it enjoyed a 7.15 billion rupee ($54.85 million)
inflow in the last seven sessions through Tuesday.
Stockbrokers said many investors have been compelled to
return to the stock market due to multi-year low interest rates,
which has made fixed income assets less attractive.
Ceylon Tobacco Company PLC fell 0.76 percent to
1,071.80 rupees after a court ruling on Monday said it should
cover up to 60 percent of the printable area with pictorial
warnings depicting the risk of smoking on cigarette packs.
Analysts said the ruling could hurt the consumption of
tobacco, hitting company profits.
Market heavyweight and conglomerate John Keells Holdings PLC
fell 0.21 percent to 234.50 rupees, while shares in
Bukit Darah PLC, fell 1.60 percent to 669.10 rupees.
Foreign investors were net buyers of 141.1 million rupees
($1.08 million) of stocks on Tuesday. They have been net sellers
of 262.2 million rupees so far this year.
The day's turnover was 757.6 million rupees, below this
year's daily average of 1.04 billion rupees.
Analysts, however, said lower credit growth has raised
questions around growth and earnings amid lower consumer
Despite a multi-year low interest rate regime, private
sector credit grew just 4.4 percent in February from a year
earlier, the slowest expansion since May 2010. That compared
with growth of 5.2 percent in January and 13.3 percent in
($1 = 130.3500 Sri Lanka Rupees)
(Reporting by Ranga Sirilal and Shihar Aneez; Editing by