Sri Lanka index slips from 10-week high on diversified shares

COLOMBO, May 13 (Reuters) – Sri Lankan shares ended slightly weaker on Wednesday, slipping from more than 10-week high hit in the previous session, led by diversified shares as political uncertainty weighed on sentiment.

The main stock index ended 0.19 percent weaker at 7,245.05, slipping from its highest close since Feb. 27 hit on Tuesday. It had gained 4.98 percent since the central bank cut key rates on April 15, while yields on t-bills have fallen 46-61 basis points since then.

Earnings of 37 listed companies released so far have on average increased 19.5 percent year-on-year in the first quarter, a stockbroker said.

Foreign investors were net buyers for the first time in eight sessions. They bought 47.1 million rupees ($352,808.99) worth of shares on Wednesday, extending the net foreign inflow so far this year to 2.92 billion rupees worth of shares.

Turnover was boosted by local buying and stood at 1.23 billion rupees, more than this year’s daily average of around 1.06 billion rupees.

Investors are waiting for direction on the political front and cues from earnings, analysts said, adding the market could be dull in the medium term until the perception of political uncertainty is addressed.

Sri Lanka’s parliament is expected to debate and pass some key reforms next week and President Maithripala Sirisena has promised to dissolve parliament after that.

Shares of conglomerate John Keells Holdings Plc ended 0.69 percent weaker, while Carson Cumberbatch Plc fell 1.57 percent.






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