Bourse slips on banks, telecommunications; volumes thin

Thursday, 9 April 2015 00:31 - - {{hitsCtrl.values.hits}}

Reuters: Shares ended slightly weaker on Wednesday as investors offloaded telecommunications and banking stocks on thin volume as many investors and brokers stayed away ahead of holidays, dealers said. The index ended 0.2%, or 13.52 points, weaker at 6,913.73 on Wednesday. “Telecom shares were down on a taxation effect impacting the counter and there is no major selling or buying ahead of the holidays,” said Dimantha Mathew, Research Manager at First Capital Equities Ltd. The new Government in the January Budget reduced mobile call rates by shifting the 25% tax from customers to the service provider. The day’s turnover was Rs. 394.8 million ($2.97 million), well below this year’s daily average of Rs. 1.13 billion. The market will be closed on 13 and 14 April for traditional Sinhala-Tamil New Year holiday. The main stock index had lost 6.6% last month, its biggest monthly drop since October 2012 as investors sold their holdings to settle margin trading amid concerns about political stability and a rise in interest rates. Yields on T-Bills rose first time at the Wednesdays auction by 1 to 15 basis points after it had fallen between 55 basis points and 63 basis points in the three weekly auctions through 1 April. Analysts expect trading to stay thin through mid-April ahead of the New Year holiday and amid political uncertainty. Shares in top mobile phone operator Dialog Axiata Plc fell 1.79%, while leading fixed line telephone operator Sri Lanka Telecom Plc declined 2.92%. Development lender DFCC Bank fell 2.33% while Distilleries Co of Sri Lanka Plc edged down 0.84%.

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