Stock market down for sixth session

Tuesday, 28 June 2016 00:02 - - {{hitsCtrl.values.hits}}

Reuters: Shares fell for a sixth straight session on Monday as investors turned cautious after the UK last week voted to leave the European Union.

The benchmark Colombo stock index ended down 0.81% at 6,318.21, its lowest close since 11 April.

The sterling fell more than 2%, the euro took a hammering and stocks dropped again on Monday as Brexit drove investors to seek safety in the yen, gold and low-risk government debt. “Market is down with the post-Brexit effects. There are no foreigners or big investors in the market. It’s all in the hands of retailers,” said Yohan Samarakkody, Head of Research, SC Securities Ltd.

Local negatives like high interest rates and lack of clarity on the proposed Capital Gains Tax also had an impact on the market, he said.

Cabinet on 15 June approved a proposal to reintroduce Capital Gains Tax, especially on land sales.

Overseas funds offloaded Rs. 142.6 million ($970,068) worth of equities on Monday, extending the year-to-date net foreign outflow to Rs. 6.17 billion worth of shares.

Turnover stood at Rs. 566.2 million, less than this year’s daily average of around Rs. 747.2 million.

Shares in Bukit Darah Company Plc fell 9.92% while Sri Lanka Telecom Plc fell 2.11%. Biggest-listed lender Commercial Bank of Ceylon Plc lost 0.90%.