Shares hit 2-wk closing low; blue chips weigh

REUTERS: Sri Lankan shares closed at their lowest in two weeks yesterday as foreign investor outflows and losses in blue chips led by market heavyweight John Keells Holdings PLC weighed on sentiment.
The Colombo stock index closed 0.4 percent weaker at 6,299.01, its lowest close since November 30.“There was a lot of foreign activities, which boosted the day’s turnover. We will not see any sentimental change until the next year,” said Acuity Stockbrokers CEO Prashan Fernando.

Foreign investors sold a net Rs.556.1 million worth of shares yesterday, with the year-to-date net foreign inflow in shares declining to Rs.469.9 million.
Turnover was Rs.1.19 billion, higher than this year’s daily average of Rs.750.3 million. Investors were concerned over proposed increases in various taxes and fees in the 2017 budget, which was passed on Saturday, that would reduce disposable income and challenge consumption-led growth, brokers said.
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.
Shares of John Keells Holdings PLC fell 1.36 percent, while top fixed line phone operator Sri Lanka Telecom lost 3.14 percent.