Friday, 29 November 2013 00:01
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Reuters: Stocks recovered on Thursday from a 10-week closing low, reversing a four-session falling streak, led by large cap shares such as Ceylon Tobacco Company Plc in thin trade, but stockbrokers said the gain cannot be sustained.
The main stock index ended 0.13%, or 7.53 points, at 5,752.20, edging up from its lowest close since 18 September.
“I don’t think this gain can be sustained, because we don’t see any change in the outlook,” a stockbroker said asking not to be named. The market has been on a falling trend after earnings in the September quarter pointed to a slower growth. Worries that fresh taxes could hit consumer spending and thus revenue of listed firms also hurt the market. A research published by John Keells Stock Brokers showed the cumulative September-quarter earnings reported by 263 companies out of 288 listed firms have fallen 28.1% year-on-year.
Investors still waited for clarity on some taxes proposed in the 2014 Budget, presented last week, brokers said.
Shares in Ceylon Tobacco Company Plc rose 2.63% to Rs. 1,057.10, while top fixed line telephone operator Sri Lanka Telecom gained 5.35% to Rs. 39.40. The day’s turnover was Rs. 718.9 million ($ 5.5 million), less than this year’s daily average turnover of Rs. 847.9 million.
Foreign investors were net sellers for a fourth straight session, offloading Rs. 6.7 million worth of shares. However, they have been net buyers of Rs. 22.5 billion so far this year.
