Stocks end tad weaker; rate decision awaited

Friday, 6 December 2013 00:00 - - {{hitsCtrl.values.hits}}

Reuters: The Bourse slipped on Thursday from a near two-week high with gains in financials offset by losses in shares of palm oil companies, and as investors waited for clarity from the monetary policy rate decision scheduled early next week. The main stock index fell 0.04%, or 2.34 points, to 5,780.58, slipping from its highest close since 22 November. Sri Lanka’s 91-day and 182-day Treasury bill yields fell to their lowest in more than two years at a weekly auction on Wednesday, Central Bank data showed. “Even though the T-bill rates came down, the market interest rates have not adjusted yet. Investors are waiting to see how that will be factored in,” said a stockbroker asking not to be named. Analysts said investors were waiting for the policy rate decision on Monday for direction and earnings amid dented confidence after tax hikes announced for the 2014 Budget. The market has been in a downward trend after the September-quarter earnings pointed to slower growth. Investors are worried that new taxes announced in the Budget last week could hit consumer spending and thus revenues of listed firms. Cumulative September-quarter earnings reported by 263 companies out of 288 listed firms fell 28.1% year-on-year, a research published by John Keells Stock Brokers showed. The day’s turnover was Rs. 1.32 billion ($ 10.09 million), boosted by block trades in Commercial Leasing and Finance PLC and Capital Trust, which accounted for 34% and 23% of the day’s turnover respectively. This year’s daily average turnover is Rs. 847.6 million. Shares in Capital Trust fell 4.52% to Rs. 74, while Commercial Leasing and Finance PLC gained 2.63% to Rs. 3.90. Ceylinco Insurance rose 5.70% to Rs. 1,385. Palm oil firm Bukit Darah Co fell 1.55% to Rs. 615.30. Foreign investors were net buyers of Rs. 292.1 million worth of shares, extending year-to-date net inflows to Rs. 22.75 billion.

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