Bourse falls; Budget uncertainty lingers

Reuters: Shares fell for a second session on Wednesday to their lowest in nearly a week despite foreign buying, while speculation and uncertainty over the upcoming Budget dented sentiment.



Brokers said investors kept to the sidelines, awaiting policy direction from the annual Budget scheduled for 20 November.

The main stock index ended down 0.44% at 7,019.23, its lowest close since 5 November.

“It’s a dull day. Investors want to see the policy direction. They are waiting to see the next year horizon. The 20 November Budget will be the next catalyst,” said Yohan Samarakkody, Head of Research at SC Securities Ltd.

Foreign investors, who have been net sellers of Rs. 3.64 billion worth of equities so far this year, bought a net Rs. 125.6 million worth of shares on Wednesday.

The day’s turnover was Rs. 545.4 million ($3.84 million), about half of this year’s daily average of Rs. 1.1 billion.

Chevron Lubricants Lanka Plc fell 2.77%, dragging the overall index.