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Sri Lankan stocks at 3-month closing low; govt policies, budget eyed
October 15, 2015 / 12:05 PM / 2 years ago

Sri Lankan stocks at 3-month closing low; govt policies, budget eyed

COLOMBO, Oct 15 (Reuters) - Sri Lankan shares fell for a third straight session and closed at their lowest level in three months on Thursday as investors waited for clues from government policies and budget, brokers said.

The main stock index ended 0.14 percent, or 9.87 points, weaker at 7,030.45, its lowest closing since July 14.

Analysts said a government move to implement a budget proposal of a retrospective tax targeting corporates is the main concern for investors.

“The supper gain tax is the cloud that is prevalent,” said Yohan Samarakkody, head of research at SC Securities (Pvt) Ltd.

“Economic and policy uncertainty is also a reason for investors to take a step back and look for direction. The situation will be gloomy till the budget.”

Analysts said investors were cautious ahead of Prime Minister Ranil Wickremesinghe’s policy statement next month outlining his government’s economic priorities and the government budget in November.

Turnover stood at 824.9 million rupees ($5.88 million), compared with this year’s daily average of 1.11 billion rupees.

Foreign investors, who have been net sellers of 2.77 billion rupees worth of equities so far this year, bought a net 205.9 million rupees worth of shares on Thursday.

Shares of Ceylon Beverage Holdings Plc fell 6.86 percent, while People’s Leasing & Finance Plc dropped 2.33 percent and Dialog Axiata Plc fell 0.90 percent. ($1 = 140.2000 Sri Lankan rupees) (Reporting by Ranga Sirilal; Editing by Subhranshu Sahu)

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