Bourse ends marginally lower

Reuters: Shares closed slightly lower on Tuesday as banking shares fell, but foreign buying capped losses while local investors waited for more clarity on a new tax bill.

The Colombo stock index ended 0.18% weaker at 6,703.18, its lowest close since 19 June. The Bourse fell 0.05% last week.

Foreign investors net bought Rs. 395.4 million worth of shares, extending their year-to-date net inflow to Rs. 21.5 billion worth of equities.

“Foreign investors are buying select shares. But local investors are still waiting for some direction, especially on new Inland Revenue Act,” said First Capital Equities Ltd. CEO Jaliya Wijeratne.

In a disclosure to the Bourse, Lanka Securities Ltd. said its client Ube Singapore Holdings Pte. Ltd. bought 10.69 million shares in Tokyo Cement Company (Lanka) at Rs. 72 each.

Subsequent to this transaction, the client has acquired 10% of the Tokyo Cement, it added. Shares in Tokyo Cement rose 5.7%.

The IMF, which has long urged Sri Lanka to boost tax revenue through modernisation and simplification of its fiscal system, has urged the Government to submit to Parliament a new Inland Revenue Act.

Turnover was Rs. 1.7 billion ($ 11.10 million), nearly two times this year’s daily average.

Shares of Hatton National Bank Plc fell 1.92% while Ceylon Theatres Plc lost 5.63% and Nestle Lanka Plc closed 1.18% lower.

The markets were closed on Monday for Id-Ul-Fitr or the Ramzan Festival Day.