Stock market ends at 2-week low; diesel duty hike hurts

Reuters : Shares ended at a two-week low on Friday in moderate volume as investors booked profits, while an increase in excise duty on diesel dragged on Lanka OIC, pulling down the overall index.

Sri Lanka’s finance ministry on Friday said it had increased the excise duty on diesel by 10 rupees with effect from 20 August, but there will not be any price increase in diesel at pumps. .

Shares in Lanka IOC fell 9.8% on Friday after the news on excise duty hike reached the market, stockbrokers said.

The benchmark Colombo stock index ended 0.59% down at 6,550.91, its lowest close since 12 August. It hit its highest close since 20 May on Tuesday.

“Investors have been taking profit and retail investors have been on the sidelines,” said Acuity Stockbrokers COO Prashan Fernando.

Foreign investors bought a net Rs. 12.1 million worth of shares on Friday, but they have been net sellers so far this year of Rs. 3.94 billion worth of shares.

Turnover stood at Rs. 678.7 million ($4.67 million), below this year’s daily average of around Rs. 750 million.

Conglomerate John Keells Holdings Plc fell 2.4%, while Nestle Lanka closed 1.3% down.