Stock market slips from over 3-month closing high on month-end settlements

Reuters: Shares ended weaker on Wednesday, slipping from their highest close in more than three-months posted in the previous session, due to month-end settlements, brokers said.

Analysts said turnover was higher on expectations of better economic performance after the Government said it would achieve its revenue target for this year.Sri Lanka’s tax revenue in the first seven months jumped 23% to Rs. 769.8 billion from a year earlier, and Finance Minister Ravi Karunanayake is optimistic about the full-year revenue target, his ministry said on Monday.

Turnover stood at Rs. 1.32 billion ($ 9.08 million), well above this year’s daily average of around Rs. 753.8 million.

The benchmark Colombo stock index ended 0.23% down at 6,588.30, slipping from its highest close since 20 May hit on Tuesday.

“The confidence is returning to the market. We can see that from the turnover levels, but we think the correction will last for another one or two days with the month-end settlements,” said Reshan Kurukulasuriya, chief operating officer of Richard Pieris Securities Ltd.

“We are looking at September as a very good month with signs of stability in Government policies.”

Foreign investors, however, sold a net Rs. 236.34 million worth of shares on Wednesday, extending the outflow so far this year to Rs. 3.86 billion worth of shares.

They are, however, net buyers of Rs. 792.8 million worth of equities so far this month.

Shares of Ceylon Cold Store Plc fell 3.09%, while conglomerate John Keells Holdings Plc fell 1.60%, dragging the overall index down.