Bourse hits 3-month low, mark 5th straight losing week

Reuters - Shares edged lower on Friday to their lowest close in nearly three months and marked their fifth straight losing week.

The Colombo Stock Index lost 0.12% at 6,375.21, its lowest close since 13 September. It fell 0.57% on the week, bringing the year-to-date gains to about 2.4%.

Shares of conglomerate John Keells Holdings PLC fell 1%, while Melstacorp Ltd lost 0.9%. The session’s turnover was worth Rs. 820.7 million ($5.36 million), less than this year’s daily average of Rs. 944 million.

Worries over a delay in local council polls and a lack of clarity over the budget and two other key policy measures weighed on sentiment, analysts said.

The Election Commission said on Monday that the council polls would be held before 17 February, amid concerns over political stability as coalition partners in President Maithripala Sirisena’s Government had decided to contest separately in the council polls.

Investors are also seeking more clarity on new taxes imposed in the 2018 Budget presented last month, analysts said, adding there could be some amendments before the final Budget vote scheduled for Saturday.