Sunday Sep 22, 2024
Friday, 10 June 2016 00:00 - - {{hitsCtrl.values.hits}}
Reuters: Shares closed steady on Thursday as positive sentiment after an IMF loan approval offset concerns over rising interest rates and foreign fund outflows.
Turnover was Rs. 326.9 million ($2.25 million), the lowest since 19 March, and less than half of this year’s daily average of around Rs. 778 million.
The benchmark Colombo stock index ended 0.03% higher at 6,528.03.
“There were some concerns over the Prime Minister’s comment on the Capital Gain Tax,” a stockbroker said asking not to be named.
Prime Minister Ranil Wickremesinghe told Parliament that the Government would take measures to abolish the Exchange Control Act and introduce the Capital Gain Tax soon, without giving any time frame.
Treasury bill yields have risen between 16 and 36 basis points to near three-year highs in the last three weekly auctions through Wednesday despite the central bank leaving key policy rates steady for a third straight month on 20 May.
The International Monetary Fund’s (IMF) Executive Board approved a three-year $1.5 billion loan to support Sri Lanka’s economic reform agenda, the global lender said on Saturday.
Investors are, however, concerned about foreign outflows, with overseas investors offloading a net Rs. 37.9 million worth of shares on Thursday, extending the year-to-date net foreign outflow to Rs. 5.7 billion.
Stockbrokers said a rise in interest rates could be detrimental to risky assets if they jumped beyond 12%. The average prime lending rate (AWPR) edged up eight basis points to 10.23% in the week ended 3 June.
Lion Brewery (Ceylon) Plc rose 3.87%, while conglomerate John Keells Holdings Plc gained 0.96%.