Home / Front Page/ Stock market falls on political uncertainty after LG polls

Stock market falls on political uncertainty after LG polls


Comments / {{hitsCtrl.values.hits}} Views / Tuesday, 13 February 2018 00:02


 

Reuters: Sri Lankan shares fell yesterday as political uncertainty, after a local council poll in which the two main ruling parties were defeated dampened investor sentiment.

The Colombo stock index ended 0.45% lower at 6,542.99, slipping from its highest close since 8 November 2017 hit on 9 February. The index gained 0.8% last week, its third straight weekly increase.

President Maithripala Sirisena’s centre-left Sri Lanka Freedom Party (SLFP) and Prime Minister Ranil Wickremesinghe’s centre-right United National Party (UNP) secured only a few council seats, raising concerns over the future of the current unity government that took office in August 2015.

Shares in conglomerate John Keells Holdings PLC fell 2%, while Sri Lanka Telecom PLC ended 3.8% weaker and biggest listed lender Commercial bank of Ceylon PLC lost 1.01%.

“The uncertainty after the defeat brought down the market. Investors will wait to see some stability and directions on how both the coalition partners are going to go forward with a stable government,” said Acuity Stockbroker Chief Executive Officer Prashan Fernando.

The surprise win by a political party backed by former president Mahinda Rajapaksa, who lost the presidential poll in 2015, could undermine the island nation’s unity government and its reform agenda, analysts said.

Rajapaksa’s Sri Lanka Podujana Peramuna (SLPP) won control of 231 local councils out of a total 340, while Wickremesinghe’s centre-right United National Party (UNP) took 34 councils and the rest were split among other parties.

Rajapaksa yesterday called for parliament to be dissolved and fresh elections to be held after the party he backed swept local council polls in the strongest rebuff yet to the unity government.

Turnover stood at Rs. 597.6 million ($ 3.86 million), well below last year’s daily average of Rs. 915.3 million.

Foreign investors, however, bought a net Rs. 289.2 million worth of shares yesterday, extending the year-to-date net foreign inflow to Rs. 5.3 billion worth of equities.

The markets will be closed for a public holiday today. Normal trading will resume tomorrow.


Share This Article


DISCLAIMER:

1. All comments will be moderated by the Daily FT Web Editor.

2. Comments that are abusive, obscene, incendiary, defamatory or irrelevant will not be published.

3. We may remove hyperlinks within comments.

4. Kindly use a genuine email ID and provide your name.

5. Spamming the comments section under different user names may result in being blacklisted.

COMMENTS

Today's Columnists

Take a check on your Board Directors

Monday, 21 May 2018

The public entrusts the Government to collect taxes and invest them prudently to ensure quality of life. Similarly, the shareholders (minority ones in particular) entrust the Board of Directors to protect and grow their investments.


Mangala’s Gam Peraliya: Good move but essential requirement a village level database

Monday, 21 May 2018

Finance Minister Mangala Samaraweera, announcing the Government’s decision to move for a flexible fuel price system based on international prices built into a pricing formula, made a side announcement as well.


New mandate to navigate ‘Nation’s management mentor’

Monday, 21 May 2018

I was delighted to be reappointed by the University Grants Commission (UGC) as the Director of the Postgraduate Institute of Management (PIM) for the second term of three years.


Misuse of State Governors by the Centre continues in India

Saturday, 19 May 2018

The gross misuse of the State or Provincial Governor in India by the ruling party at the Centre in New Delhi to achieve its narrow political interests continues to plague the functioning of the Indian Constitution.


Columnists More