Thursday, 22 January 2015 00:05
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Reuters: Shares fell to a three-week low on Wednesday amid low trading volumes as concern over political stability weighed on sentiment while investors awaited the new government’s interim budget scheduled for next week.
The main stock index ended 0.6% lower, or down 44.10 points, at 7,324.40, its lowest since 31 December.
The day’s turnover was Rs. 796.3 million ($ 6.04 million), less than last year’s daily average of Rs. 1.42 billion, exchange data showed.
President Maithripala Sirisena’s coalition has promised a 100-day program to restore democracy and reform the economy before he dissolves parliament for a general election after 23 April.
Sirisena’s Government will present an interim budget on 29 January with an aim to cut cost of living.
“Local and foreign investors are waiting to see some kind of direction from the budget, especially on interest rates and foreign exchange rates,” said a stockbroker.
Yields on short-term government securities edged up one basis point at Wednesday’s auction of government securities.
Conglomerate John Keells Holdings Plc fell 2.38% and Caltex Lubricant Lanka Plc lost 3.99%, dragging down the index.
After the market closed, a Government minister said the new administration had reappointed Thilak Karunaratne as chief of the Securities and Exchange Commission (SEC).
Karunaratne has been tasked with investigating past stock market deals suspected to involve corruption.
Stockbrokers said Karunaratne’s appointment and the investigations would pull down the index down in the near term, but would instill confidence over the longer term.
Foreign investors, who bought a net Rs. 22.07 billion worth of stocks last year, were net buyers of Rs. 69.1 million worth of shares on Wednesday.
