Bourse edges up; Budget awaited

Reuters: Shares edged up on Wednesday for a second straight session, led by blue-chip stocks, but trading volume was low as investors waited for direction from the Budget later this week.

The main stock index ended 0.06%, or 4.02 points, firmer at 6,981.97.

“Select strategic buying was there on lower scale,” said Dimantha Mathew, Research Manager at First Capital Equities Ltd.

Brokers said investors were also waiting for policy direction from the annual Budget scheduled later this week.

Finance Minister Ravi Karunanayake will seek to boost tax revenues and rationalise spending in the new Government’s first full-year budget on Friday, but analysts see him showing little commitment to fiscal consolidation.

The day’s turnover was at Rs. 534.8 million ($3.8 million) on Wednesday, less than this year’s daily average of Rs. 1.1 billion.

Gains in Lion Brewery Plc and Sampath Bank Plc outpaced losses in biggest-listed lender Commercial Bank of Ceylon Plc, which fell 1%. The market heavyweight John Keells Holding Plc fell 0.3%.

Foreign investors, who had sold a net Rs. 3.57 billion worth of equities so far this year, were net buyers of Rs. 56.04 million worth of shares on Wednesday.