Bourse steadies; political woes trim volume

Wednesday, 21 January 2015 00:50 - - {{hitsCtrl.values.hits}}

Reuters: Shares ended steady on Tuesday, near a more than two-week low hit in the previous session, but trading volume slumped to a three-week low as investors awaited the new Government’s interim budget scheduled for next week. Investors are also waiting for the Government’s economic policies amid political uncertainty and a lack of clarity on the future of the projects initiated by the previous Government. The main stock index ended 0.02%, or 1.82 points firmer, at 7,368.50, edging up from its lowest since 2 January hit on Monday. The day’s turnover was Rs. 626.2 million ($4.75 million), the lowest since 29 December and less than half of last year’s daily average of Rs. 1.42 billion, exchange data showed. President Maithripala Sirisena’s coalition has promised a 100-day program to restore democracy and the economy before he dissolves Parliament for a general election after 23 April. Sirisena’s Government will present an interim budget on 29 January with an aim of reducing cost of living. “The market is steady in low volumes with the political uncertainty. Investors will be cautious at least until the budget,” said Reshan Kurukulasuriya, Chief Operating Officer of Richard Pieris Securities Ltd. Analysts said investors were concerned about political stability after Sirisena announced an interim Cabinet last week that he said would carry out reforms to fight corruption in the 100 days to a Parliamentary election. Gains were led by Ceylon Tobacco Company Plc, which rose 1.18%. Leading the decliners was Carson Cumberbatch Plc, which fell 3.17%. Analysts said the market was closely monitoring the Government’s bureaucratic appointments to check if they were in line with its pledge of good governance and transparency. Foreign investors, who bought a net Rs. 22.07 billion worth of stocks last year, were net sellers of Rs. 21.4 million of shares on Tuesday.

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