Bourse dips on profit-taking

Reuters: Shares fell for a second straight session on Monday in moderate volume as investors booked profits.

The increase in excise duty on diesel which dragged on Lanka OIC also pulled down the index, brokers said.

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

Shares in Lanka IOC ended down 2.12% on Monday. They fell 10.58% during Friday’ session after news of the excise duty hike.

The benchmark Colombo stock index ended 0.16% down at 6,540.19, its lowest close since 12 August. It hit its highest close since 20 May on Tuesday.

The Bourse fell 0.78% last week, recording its first weekly fall in four weeks.

“We are experiencing a bit of profit-taking,” said Dimantha Mathew, head of research at First Capital Equities Ltd.

“But the overall investor sentiment is improving continuously with investors bullish on the construction sector as the Government is announcing new expressway constructions and other development projects.”

Foreign investors bought a net Rs. 212.8 million ($ 1.46 million) worth of shares on Monday, extending the net foreign inflow so far this month to Rs. 939.3 million worth of equities, but have been net sellers of Rs. 3.71 billion worth of shares so far this year.

Turnover stood at Rs. 889.9 million, more than this year’s daily average of Rs. 753.4 million.

Shares in Dialog Axiata Plc fell 0.88% while Vallibel One Plc fell 2.74% and Cargills Ceylon Plc fell 1.63%.