Bourse falls for 2nd day; bank stocks, beverages down

Thursday, 31 August 2017 00:00 - - {{hitsCtrl.values.hits}}

Colombo (Reuters): Shares fell for a second session on Wednesday, ending near a more than four-month closing low hit last week, as investors sold shares of banks and beverages companies.

The Colombo stock index fell 0.13% to 6,390.26.

Shares of Nestle Lanka Plc fell 0.6%, while biggest listed lender Commercial Bank of Ceylon Plc slipped 0.7% and Sri Lanka Telecom Plc lost 1%.

The index closed at its lowest since 18 April on Thursday. It fell 0.4% last week, its sixth straight weekly fall, and has shed more than 4% since 27 July up to Wednesday’s close.

“It was totally a volatile market. Lack of retail participation is the main reason for the market to come down,” said Atchuthan Srirangan, a senior research analyst at First Capital Holdings Plc.

“Still, investors are waiting to see the outcome of the Inland Revenue Bill.”

The bill, Sri Lanka’s major tax reform since independence from Britain in 1948, seeks to expand the tax net and stamp out evasion. It is expected to be presented in parliament on 6 September.

Foreign investors net bought Rs. 89.5 million (about $ 585,925) worth of shares, extending the year-to-date net foreign inflow into equities to Rs. 27.6 billion.

Turnover stood at Rs. 592 million, compared with this year’s daily average of around Rs. 858.1 million.