* Financial shares drive down market
* Foreigners continue to exit Asia's best-performing bourse
* Rupee flat despite importer dlr demand
COLOMBO, March 23 (Reuters) - Sri Lanka's stock market fell on Wednesday as investors booked profits in financial shares after a recent rallym but amid negative sentiment over rising oil prices due to turmoil in oil-producing Middle Eastern and North African countries.
The island's main share index closed 0.18 percent or 13.16 points weaker at 7,207.10, mainly due to a fall in financial and insurance shares. It hit a record closing high of 7,811.82 on Feb 14.
Oil steadied on Wednesday due to concerns that unrest in Yemen may spill over into neighbouring countries in the oil rich Middle East Gulf region amid Western powers continued attack in Libya.
Brent crude futures rose 9 cents to $115.76 a barrel at 0855 GMT. Prices have risen four out of the past five sessions but fallen from the near $120 hit in late February.
Sri Lanka imports all its oil, so the crises in Libya and the Middle East mean the island nation's economy could get hit by soaring imported inflation and a loss of earnings from Sri Lankan expatriate workers and lower tea demand from the region.
The day's turnover was 2.97 billion Sri Lanka rupees ($26.9 million), more than last year's average of 2.4 billion rupees and less than this year's daily average of 3.3 billion.
Foreign investors were net sellers of 369 million rupees' worth of shares on Wednesday and have sold a net 6.1 billion in 2011, after selling a record net 26.4 billion in 2010.
The bourse is Asia's best performer so far in 2011 with an 8.6 percent gain, after bringing in the region's best return with 96 percent last year.
Traded share volume was 49.6 million, against a five-day average of 52.7 million. The 30-day and 90-day average trading volumes were 72.1 million and 68.3 million respectively. Last year's daily average volume was 67.9 million.
The bourse is trading at a forward price-to-earnings (P/E)ratio of 14.7, one of the highest among emerging markets, compared with 12.2 in Asian markets and 11.4 in global emerging markets, Thomson Reuters StarMine data showed.
The rupee closed flat at 110.38/40 a dollar despite severe importer dollar demand as a state bank sold dollars at a flat rate of 110.40, dealers said.
FACTORS TO WATCH:
- Impact on stocks and rupee due to ongoing Middle East/North Africa turmoil
- Impact of rising inflation on the bourse
- The extent of rupee appreciation the central bank will allow to curb imported inflation
source - in.reuters.com
No comments:
Post a Comment