Sri Lanka stocks end steady; investors watch interest rates

Wednesday, 4 December 2013 00:00 - - {{hitsCtrl.values.hits}}

Reuters: The Bourse ended steady on Tuesday as losses in diversified stocks offset gains in shares of food and beverage companies for a second day, while investors watched earnings and interest rates for direction. The main stock index dropped 0.02%, or 0.98 points, to 5,773.12. The market had hit a 10-week low on Wednesday. Confidence factor is not there and investors are still waiting for directions on interest rates and earnings, a stockbroker said. There is speculation that interest rates will go further down. The market has been in a falling trend after September-quarter earnings pointed to slower growth. Investors are worried that fresh taxes announced in the Budget last week could hit consumer spending and thus the revenues of listed firms. The Central Bank has reduced key monetary policy rates to a multi-year low, but investors still bet on debt instruments, which give them better returns than the risky share market, stockbrokers said. Research published by John Keells Stock Brokers showed cumulative September-quarter earnings reported by 263 companies out of 288 listed firms fell 28.1% year-on-year. The day’s turnover was Rs. 960.8 million ($ 7.33 million), boosted by block trades in Commercial Leasing and Finance PLC, which accounted for more than 45% of the day’s turnover. This year’s daily average turnover is around Rs. 845 million. Foreign investors were net sellers of Rs. 105.3 million worth of shares, but the Bourse has a year-to-date net inflow of Rs. 22.41 billion.

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