Bourse closes at 7-week low; Budget awaited

Thursday, 21 November 2013 00:44 - - {{hitsCtrl.values.hits}}

Reuters: Stocks fell to a seven-week closing low on Wednesday led by blue-chips and large-caps as investors awaited directions from the 2014 Budget, which will be presented today. The main stock index closed 0.27%, or 15.62 points, weaker at 5,793.53, its lowest level since 1 October. President Mahinda Rajapaksa, who is also the Finance Minister, will unveil the 2014 Budget, which is expected to include populist measures ahead of a possible election year as well as some tax hikes to enable the Government to further trim its still-large fiscal deficit. Stockbrokers said worries that companies could be subjected to possible tax hikes in the Budget dented sentiment. Shares in top fixed-line phone operator Sri Lanka Telecom fell 2.36% to Rs. 37.30, diversified conglomerate Carson Cumberbatch PLC lost 2.13% to Rs. 372, while Ceylon Tobacco Company PLC ended 0.89% weaker at Rs. 1,060. The Bourse has been sluggish due to concerns over a drop in September-quarter earnings. Many listed firms release their quarterly earnings this month. The day’s turnover was Rs. 486.4 million ($ 3.71 million), lower than this year’s daily average of around Rs. 855.4 million. Foreign investors were net sellers for the first time in the last five sessions, selling Rs. 74.6 million of shares on Wednesday, but the country has seen Rs. 22.8 billion of net foreign inflows year-to-date this year.

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