Tuesday, 26 November 2013 00:01
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Reuters: Stocks fell on Monday to hit a near nine-week closing low while turnover hit a more than four-month low on concerns over lack of clarifications about taxes in the 2014 Budget proposals presented last week.
The main stock index closed down 0.29%, or 17.05 points, at 5,775.67, its lowest close since 18 September.
The day’s turnover was Rs. 193.5 million ($ 1.48 million), its lowest since 17 July, and well below this year’s daily average of around Rs. 853.3 million.
President Mahinda Rajapaksa, who is also the Finance Minister, unveiled a 2014 Budget that aims to spur growth, shrink the budget deficit and expand the stock exchange in Colombo.
Many analysts said though the Budget seems to be ensuring fiscal consolidation, it is expected to raise the cost of goods and services because of high taxes. On Monday, thousands of Marxist opposition members protested against the tax hikes.
Analysts and stockbrokers also said they were awaiting more clarifications on Budget proposals.
The banking sector index fell 0.46% on Monday. The Government also slapped a 2% nation building tax on banks and the financial sector with effect from January.
Shares in large-cap firm Bukit Darah PLC fell 1.30% to Rs. 659.80 while conglomerate John Keells Holdings PLC fell 0.50% to Rs. 217.80.
Foreign investors were net sellers of Rs. 12 million worth of shares, but they have been net buyers of Rs. 22.59 billion so far this year.
