Bourse ends lower for 4th straight session

Thursday, 10 December 2015 00:33 - - {{hitsCtrl.values.hits}}

Reuters: Shares closed lower for a fourth straight session on Wednesday as investors turned cautious going into the holiday season and ahead of a likely decision by the US Federal Reserve next week on raising interest rates, brokers said.

The main stock index ended down 0.11% at 6,841.55, its lowest close since 31 March.

“Local participation is very low with the post-budget impact and with the closing in of the holiday season. Investors are not in a buying mood ahead of the Fed rate decision,” said Dimantha Mathew, Research Manager at First Capital Equities Ltd.

The stock market has fallen for 10 out of the last 11 trading sessions and investor sentiment has been subdued after Prime Minister Ranil Wickremesinghe last week warned of lower economic growth next year due to the global slowdown.

The International Monetary Fund said on Monday Sri Lanka’s 2016 Budget raises questions about its ambitious revenue and capital expenditure targets as the Government is falling far short of steps needed to improve the tax system.

Sri Lanka doubled a nation-building tax and adjusted the corporate tax structure in its Budget for 2016 on 20 November to finance greater Government spending in health and education, and accelerate the pace of economic expansion.

Foreign investors have sold a net Rs. 3.35 billion ($ 23.40 million) worth of equities so far this year, but they bought a net Rs. 66.9 million worth shares on Wednesday.

Turnover stood at Rs. 586.1 million, well below this year’s daily average of Rs. 1.1 billion.

Shares of Distilleries Company of Sri Lanka Plc fell 1.12%, while Dialog Axiata Plc slipped 0.93% lower. Chevron Lubricants Lanka Plc lost 1.60%.

Shares in index heavyweight John Keells Holdings Plc closed down 0.28%.