Tuesday Dec 24, 2024
Tuesday Dec 24, 2024
Saturday, 5 December 2015 00:00 - - {{hitsCtrl.values.hits}}
Reuters: Shares edged down on Friday, hovering near an eight-month closing low, on worries that the new budget proposals would hit earnings of financial firms.
Investor sentiment was also dented following Prime Minister Ranil Wickremesinghe’s warning on Wednesday of lower economic growth in 2016 due to the global slowdown.
The main stock index ended 0.16 percent weaker at 6,869.56. On Wednesday, it closed at its lowest level since 31 March at 6,862.79.
The index was heading towards oversold territory with the 14-day Relative Strength Index at 30.523 versus Thursday’s 31.662, Reuters data showed. A level between 70-30 indicates the market is neutral.
“It was another dull day,” said Yohan Samarakkody, Head of Research at SC Securities Ltd., adding that foreign and retail participation was low. “We expect this trend to continue till January,” he said.
Local institutions and retail investors remained on the sidelines, analysts said.
Foreign investors were net sellers for the first time in five sessions. They sold a net Rs. 13.2 million worth of shares on Friday, extending the year-to-date net foreign outflow to Rs. 3.49 billion worth of equities so far this year.
Turnover was Rs. 371.9 million, the lowest since 21 July and well below this year’s daily average of Rs. 1.1 billion.
Shares of Nestle Lanka Plc dropped 2.07%, while John Keells Holdings Plc fell 0.39% and Distillers Company of Sri Lanka Plc eased 1.71%.
The Government on 20 November announced a raft of steps, including the removal of a 0.3% share transaction levy, to stimulate trading in the share market and increase liquidity.
Rating agency Fitch last week said Sri Lanka’s 2016 Budget provides no clear plan for fiscal consolidation over the medium term and the absence of such a framework will put more pressure on the fiscal deficit.
