Sri Lanka shares end lower amid foreign fund outflow
COLOMBO, April 18 (Reuters) – Sri Lankan shares slipped on Monday from a near 10-week closing high hit in the previous session, led by financials amid foreign investor outflow as rising interest rates and lower earnings in the March quarter dented investor sentiment, brokers said.
The benchmark stock index ended 0.3 percent weaker, or 19.01 points, at 6,382.31, slipping from its highest close since Feb. 8 hit on Friday.
Foreign investors were net sellers of 221.5 million rupees ($1.53 million) worth equities on Monday, extending the year to date net foreign outflow to 3.32 billion rupees worth of shares.
"Market showed some dry activities and the retail activity was very dull after the new year (holidays)," said Yohan Samarakkody, head of research, SC Securities (Pvt) Ltd.
Investors will be wary due to policy uncertainty, higher interest rates, lower than expected March-quarter earnings and a falling rupee, he said.
The index remained in overbought zone on Monday for the third straight session.
The 14-day relative strength index ended at 71.547 on Monday, compared with Friday’s 74.472, Reuters data showed.
A level between 70 and 30 indicates the market is neutral.
Turnover stood at 613.9 million rupees ($4.23 million), less than this year’s daily average of 786.9 million rupees.
Shares in Commercial Leasing & Finance Plc fell 4.88 percent, while Aitken Spence Plc fell 3.19 percent and Lanka ORIX leasing Company Plc fell 2.11 percent