Fri, 03 Dec 2021 Today's Paper

Shares fall for 3rd session to over 4-mth closing low

17 November 2016 12:02 am - 0     - {{hitsCtrl.values.hits}}


REUTERS: Sri Lankan shares fell to a more than four-month closing low in thin volume yesterday as investor sentiment was dented by the budget tax proposals last week, including revisions in corporate and withholding taxes, to boost revenue.

The government aims to boost its 2017 tax revenue by 27 percent to Rs.1.82 trillion year-on-year, to meet a commitment given to the International Monetary Fund in return for a US $ 1.5 billion loan in May.
The benchmark index of the Colombo Stock Exchange ended 0.89 percent, or 57.13 points, weaker at 6,349.03, its lowest close since July 7.
It fell for a third straight session and was in the over sold territory, with the 14-day relative strength index at 26.347 versus Tuesday’s 36.333, Thomson Reuters data showed. A level between 30 and 70 indicates the market is neutral.
“The budget proposals are still not clear and there are some concerns that some of the proposals could be reversed as in the last year,” said a stockbroker asking not to be named.
Foreign investors offloaded shares worth a net Rs.79.6 million, their second straight session of selling. They have sold a net Rs.1.09 billion of shares so far this year.
Analysts said the increase in various taxes and fees would reduce the disposable income of people and challenge the consumption-led growth
Turnover was Rs.514.1 million, less than this year’s daily average of Rs.706.4 million.
Shares of Commercial Bank of Ceylon PLC, the country’s biggest listed lender, fell 4.66 percent, while Dialog Axiata PLC declined 5.41 percent and Sri Lanka Telecom PLC dropped 0.27 percent.



  Comments - 0

Add comment

Comments will be edited (grammar, spelling and slang) and authorized at the discretion of Daily Mirror online. The website also has the right not to publish selected comments.

Reply To:

Name - Reply Comment

A Sri Lankan giving dignified burials to unclaimed bodies for five decades

After their death, most people are memorialized at a service, surrounded by g

Focus on Laggala Gem mining big shots bigger than the law

The truth is now being uncovered regarding an illegal mining racket in state

How and why the TNA was formed twenty years ago

The Tamil National Alliance (TNA) is now twenty years of age. The premier pol

India lays emphasis on culture diplomacy with Sri Lanka

Indian Prime Minister Narendra Modi wanted to inaugurate the Kushinagar Inter