Stocks close down 1.9-pct amid global market uncertainty

Aug 24, 2015 (LBO) – Sri Lankan stocks closed down 1.9 percent on Monday with index heavy stocks making losses and investors taking profits amid international market uncertainty, brokers said.

Global markets took a beating on Monday after China’s Shanghai composite index tumbled 8.49 percent, erasing gains made so far this year. The London FTSE 100 fell 2.88 percent and the Hong Kong Hang Seng crashed 5.2 percent on worries about China’s economic slowdown percolating around the globe.

“Global market crash is one the reasons for the ASPI drop today. There could be uncertainty tomorrow as well,” a broker said.

“The market faced severe selling as investor’s off-loaded shares on profit taking and global growth concerns. Most of Asian markets suffered today from major losses on fears of a China-led global economic slowdown,” Lanka Securities said.

The Colombo benchmark All Share Price Index closed down 140.08 points at 7,331.09 down 1.87 percent. The S&P SL20 closed 87.01 points lower at 4,053.67 down 2.10 percent.

Turnover was 3.36 billion rupees, up from 959 million rupees, Friday with 26 stocks closing positive against 177 negative.

CHC Investment buying a 31 percent stake in the diversified Taprobane Holdings at 5.50 rupees accounted for half the day’s turnover. Taprobane Securities said in a stock exchange filling that CHC Investment bought 310.8 million shares of Taprobane Holdings worth 1,7 billion rupees.

The main index showed losses in John Keells Holdings closing at 183.90 rupees, down 5.60 rupees and Commercial Bank closing at 170.70 rupees, down 4.30 rupees with over 2.2 million shares traded.

Dialog Axiata closed at 11.40 rupees, down 0.30 rupees with over 5.7 million shares traded.

Banking stocks also traded actively DFCC Bank closing at 191.10 rupees, down 3.00 rupees and Amana Bank closed flat at 5.00 rupees with over 14.5 million shares traded.

Foreign investors were net sellers for the second consecutive session with a net foreign outflow of 164 million rupees and
foreign participation was 19 percent.

Net foreign outflow was mainly seen in Commercial Bank 166 millioN rupees, John Keells Holdings 39 million rupees and Lanka Century Investments 14 million rupees while net foreign inflow was mainly seen in Dialog Axiata 57 million rupees.

(UPDATED)