COLOMBO, Sept 2 Sri Lankan stocks slipped for a
second straight session on Tuesday, moving further away from a
more than three-year high hit on Friday, led by conglomerate
John Keells Holdings Plc and Dialog Axiata Plc
The main stock index fell 0.09 percent, or 6.07
points, to close at 7,024.82. It rose to a more than three-year
high of 7,034.09 on Friday.
"The market was dragged by Keells and Dialog shares. It will
be slow for a while before it sees the next rally," said a
stockbroker asking not to be named.
The index has gained nearly 18.81 percent so far this year.
Analysts said low interest rates and continued foreign buying
into risky assets had boosted sentiment.
The bourse has been in an overbought region since July. The
Relative Strength Index, a momentum indicator tracked by
chartists, was at 73.321 on Tuesday, Thomson Reuters data
Stocks are deemed "overbought" above the 70-mark, which
tends to signal a reversal in the near term.
Market heavyweight John Keells Holdings Plc, which led the
overall fall in the index, fell 0.76 percent to 247.6 rupees,
while Dialog Axiata Plc fell 1.77 percent to 11.30 rupees.
Tuesday's turnover stood at 1.09 billion rupees ($8.37
million), slightly below this year's daily average of 1.2
Foreign investors were net buyers of 21.3 million rupees
worth of shares on Tuesday, extending the year-to-date net
foreign inflows to 8.26 billion rupees.
($1 = 130.1800 Sri Lankan rupee)
(Reporting by Ranga Sirilal; Editing by Anupama Dwivedi)