Shares end down; turnover slumps

Tuesday, 26 July 2016 00:03 - - {{hitsCtrl.values.hits}}

Reuters: Shares fell on Monday as investors sold large-cap shares like Ceylon Tobacco Company Plc while turnover slumped to a near-three-week low as investors awaited directions on the country’s economic policy.

The benchmark Colombo stock index ended down 0.49% at 6,397.09, slipping from its highest close since 21 June hit on Friday.

“Investors are taking a look at where the market is going. It’s just the direction that is required right now,” said Yohan Samarakkody, Head of Research, SC Securities Ltd.

“Investors are waiting for the prime minister’s statement and any clues on the next budget. Quite a lot of uncertainty will be cleared off then.”

Analysts said investors have been waiting for direction on the country’s economic policy, expected to be announced by Prime Minister Ranil Wickremesinghe next month.

Turnover stood at Rs. 285.9 million ($1.96 million), the lowest since 5 July and well below this year’s daily average of around Rs. 731.6 million.

Overseas investors bought a net Rs. 58.1 million worth of shares on Monday, but have been net sellers of Rs. 4.8 billion worth of equities so far this year.

Shares in Ceylon Tobacco Company Plc fell as much as 3.12% while food and beverage maker Nestle Lanka Plc fell 3.33% and leading mobile phone operator Dialog Axiata Plc fell 2.73%, dragging the overall index down.