Stock market steady at near 3-month low

Reuters: Shares closed steady on Thursday, after three straight losing sessions, as gains led by financials were offset by losses in mid-cap stocks.

The Colombo Stock Index firmed 0.03% at 6,382.95, hovering around a near three-month closing low hit in the previous session.

Sampath Bank and Commercial Bank of Ceylon gained 1.3% and 0.2%, respectively, while shares in Asian Hotels and Properties Plc fell 6.7%.

“We see a typical year-end market. Foreign investor interest continues,” said Softlogic Stockbrokers Deputy CEO Hussain Gani.

Foreign trade accounted for 56% of the day’s turnover worth Rs. 986 million ($ 6.43 million), higher than this year’s daily average of Rs. 944.4 million.

Foreign investors, who have been net buyers of Rs. 18.57 billion worth of shares so far this year, were net sellers of equities worth Rs. 37.5 million on Thursday.

Worries over a delay in local council polls and a lack of clarity over the budget and two other key policy measures weighed on sentiment, analysts said.

The Election Commission said on Monday that the council polls would be held before 17 February, amid concerns over political stability as coalition partners in President Maithripala Sirisena’s Government had decided to contest separately in the council polls.

Investors are also seeking more clarity on new taxes imposed in the 2018 Budget presented last month, analysts said, adding there could be some amendments before the final budget vote scheduled for 9 December.