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Thursday, 23 November 2017 00:26 - - {{hitsCtrl.values.hits}}
Reuters: Shares ended slightly higher on Wednesday in dull trade, as investors stayed on the sidelines awaiting clarifications on new taxes in the National Budget and key legislations unveiled earlier this month, analysts said.
The Colombo stock index ended 0.09% firmer at 6,464.44. It lost 1% last week.
Large caps led the gains, with Ceylon Beverage Holdings Plc jumping 17.8% and Lion Brewery Ceylon Plc up 5.6%.
“Investors are waiting for clarifications on the Budget, Inland Revenue Act, and Exchange Control Act,” said First Capital Holdings PLC Senior Research Analyst Atchuthan Srirangan.
“There was interest in blue chips. The index has yet to find a direction after the Budget.”
Finance Minister Mangala Samaraweera imposed new taxes on motor vehicles, telecoms, banks and liquor in the 2018 Budget presented on 9 November to boost revenues, as the budget deficit for the current year slipped to 5.2% of the Gross Domestic Product.
The final Budget vote is scheduled for 9 December and the market expects some amendments that could help give it some direction.
Analysts said market participants have sought more clarity on these taxes and that there could be some amendments to these proposals before the final vote.
The Government also released gazette notifications on the Inland Revenue Act and the Exchange Control Act, with investors waiting for clarifications on the new legislations.
Foreign investors net bought equities worth Rs. 20.7 million ($134,678) on Wednesday, extending the net foreign inflow to Rs. 19.7 billion so far this year.
The day’s turnover, which hit a more-than two-week low, stood at Rs. 324.3 million, around a third of this year’s average of around Rs. 952.5 million.
