Shares end slightly lower ahead of Budget

Reuters: Shares ended marginally lower on Tuesday, down from a more than two-week closing high hit in the previous session, as investors turned cautious ahead of the National Budget scheduled on 10 November.

Sri Lanka’s 2017 Budget plan will seek to boost revenue through a Capital Gain Tax on properties, simplify tax collection and offer incentives to spur exports, though progress will depend on the Coalition Government agreeing on economic priorities, analysts say.

The benchmark index of the Colombo Stock Exchange ended 0.09% weaker, or down 5.91 points, at 6,439.06, slipping from its highest close since 21 October hit on Monday.

Turnover stood at Rs. 161.7 million ($1.10 million), less than a quarter of this year’s daily average of Rs. 715.7 million.

Foreign investors bought beaten down stocks for a fifth straight session, picking up shares worth a net Rs. 12.3 million. They have net sold Rs. 1.01 billion worth of shares so far this year.

“It was a very lethargic day. Investors are waiting for the upcoming Budget,” said Yohan Samarakkody, Head of Research, SC Securities Ltd.

Shares in the biggest listed lender, Commercial Bank of Ceylon Plc, fell 0.86%, while Dialog Axiata Plc lost 1.74%. Conglomerate John Keells Holdings Plc fell 0.59%.