Shares hit over 1-week low; budget uncertainty lingers

13 November 2015 03:22 am - 0     - {{hitsCtrl.values.hits}}

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REUTERS: Sri Lankan shares fell for a third straight session yesterday to their lowest in more than a week despite foreign buying, while speculation and uncertainty over the upcoming budget dented investor sentiment.

Brokers said total trading volume was low because investors were on the sidelines awaiting policy direction from the annual budget scheduled for Nov. 20. 
The main stock index ended down 0.18 percent, or 12.88 points, at 7,006.35, its lowest close since Nov. 4. 

“Activity levels are drying down. Everybody is waiting for the budget as they are concerned over the possible taxes from the budget,” said Dimantha Mathew, research manager at First Capital Equities (Pvt) Ltd.

Finance Minister Ravi Karunanayake said market speculations on many uncertainties including further rupee weakening would be addressed once the clarity is given through the budget.

He also said the upcoming budget will be “capital oriented” and will aim for revenue that is higher than recurrent expenditure. 

Foreign investors, who have been net sellers of Rs.3.55 billion worth of equities so far this year, bought a net Rs.93.9 million ($661,500) worth of shares on Thursday. The day’s turnover was Rs.579.8 million, about half of this year’s daily average of Rs.1.1 billion.

Shares in Commercial Bank of Ceylon Plc fell 0.65 percent, while Dialog Axiata Plc fell 0.89 percent, dragging the overall index.

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