Shares end slightly weaker; turnover touches 3-wk low

REUTERS: Sri Lankan stocks edged down yesterday, led by blue chips on profit-taking, while trading volume fell to a three-week low as investors stayed on the sidelines awaiting direction from the budget and September-quarter corporate results.

The benchmark index of the Colombo Stock Exchange finished 0.3 percent weaker at 6,562.50.

Turnover was Rs.336.2 million, the lowest since September 19, and less than half of this year’s daily average of around Rs.751 million.

Investors are not willing to sell at lower prices, resulting in lower volume, said Acuity Research CEO Prashan Fernando.

Stockbrokers said the market might see lower trading volumes as many investors await direction from the budget, scheduled on November 10, and the government’s long-term economic policy announcement.

“Investors will make their moves depending on corporate earnings in the September quarter,” Fernando added.

A number of companies are expected to report their September-quarter results later this month, stockbrokers said.

Foreign investors sold a net Rs.7.7 million worth of shares yesterday, extending the net foreign outflow to Rs.2.97 billion so far this year.

Shares of Nestle Lanka PLC fell 4.15 percent, while leading fixed-line phone operator Sri Lanka Telecom dropped 1.05 percent.