Shares close below key level of 6,500

Friday, 14 October 2016 00:01 - - {{hitsCtrl.values.hits}}

Reuters - Shares closed below a key psychological level of 6,500 on Thursday in thin trade as most investors stayed on the sidelines awaiting directions from corporate results and the budget scheduled for early next month.

The benchmark index of the Colombo Stock Exchange fell for a fourth straight session and ended 0.35% weaker at 6,487.13, its lowest close since 27 September.

It has shed 1.45% in the past four sessions.

“Investors will wait for clear directions on capital gain tax (in the budget),” said Acuity Stockbrokers CEO Prashan Fernando. “So until the budget, we may see low-volume trade.”

Turnover was Rs. 372.2 million ($ 2.54 million), less than half of this year’s daily average of around Rs. 750 million.

Foreign investors, who have sold a net Rs. 2.37 billion ($ 16.19 million) worth of shares so far this year, bought a net Rs. 88.7 million worth of equities.

Trading volumes have been low as cautious investors waited for announcements of corporate results for the September quarter starting later this month and for direction on economic policy when the country’s budget is unveiled early November, brokers said.

Top conglomerate John Keells Holdings fell 1.36%, while private lender Commercial Bank of Ceylon dropped 0.47%.