Bourse languishes at over 3-month low

Reuters: Shares closed at their lowest level in more than three months on Monday, falling for a fifth straight session as investors awaited cues from government policies and budget, brokers said.

The main stock index ended 0.05%, or 3.39 points, weaker at 7,017.35, its lowest close since 13 July.

“There is no excitement. There is a lot of clutter regarding what to expect from the budget,” said Danushka Samarasinghe, research head at Softlogic stockbrokers.

“The uncertainties have hit the market and created negative sentiment,” Samarasinghe said.

Analysts said investors were cautious ahead of Prime Minister Ranil Wickremesinghe’s policy statement next month outlining his government’s economic priorities ahead of 2016 budget announcement scheduled in the third week of November.

Analysts said a government’s move to implement a budget proposal of a retrospective tax targeting corporate is the main concern for investors.

Turnover stood at Rs. 1.2 billion ($ 8.5 million), compared with this year’s daily average of Rs. 1.1 billion.

Foreign investors were net sellers of Rs. 174.4 million worth of shares on Monday, extending the year to date net foreign outflow to Rs. 2.91 billion worth of equities.

Shares of Cargills (Ceylon) Plc fell 7.31% while Sri Lanka Telecom Plc declined 1.66%, dragging the main index.