Shares mark four month closing low in thin trade

Reuters: Shares fell for a fifth session on Thursday, posting their lowest close in four months, as local investor sentiment was subdued following a string of disappointing June-quarter corporate results.

However, the decline was limited as foreign investors bought into equities.

The Colombo stock index fell 0.14%, or 9.29 points, to 6,408.12, its lowest close since 18 April. The Bourse has fallen 3.9% since 27 July and slid in 14 out of 15 sessions due to a fall in June-quarter profit and speculation that the new tax reform bill will impose a tax on trading stocks.

However, State Finance Minister Eran Wickramaratne on Thursday said the concerns on the tax will be addressed.

“The market somewhat recovered and still we see investors buying stocks which have value,” said Hussain Gani, deputy CEO at Softlogic Stockbrokers.

Foreign investors bought shares worth a net Rs. 13.6 million ($ 88,744) on Thursday, extending the year-to-date net inflow to Rs. 27.7 billion.

Turnover was Rs. 334.9 million, less than half of this year’s daily average of around Rs. 871.7 million.

Shares of C T Holdings Plc lost 7.8%, while Nestle Lanka Plc ended 2.2% weaker, Melstacorp Ltd fell 1.9% and Hatton National Bank Plc declined 1.1%.