Shares end slightly weaker; turnover touches 3-wk low

Reuters: Stocks edged down on Monday, led by blue chips on profit-taking, while trading volume fell to a three-week low as investors stayed on the sidelines awaiting direction from the budget and September-quarter corporate results.

The benchmark index of the Colombo Stock Exchange finished 0.3% weaker at 6,562.50.Turnover was Rs. 336.2 million ($ 2.30 million), the lowest since 19 September, and less than half of this year’s daily average of around Rs. 751 million. “Investors are not willing to sell at lower prices, resulting in lower volume,” said Acuity Research CEO Prashan Fernando.

Stockbrokers said the market might see lower trading volumes as many investors await direction from the budget, scheduled on 10 November, and the Government’s long-term economic policy announcement.

“Investors will make their moves depending on corporate earnings in the September quarter,” Fernando added.

A number of companies are expected to report their September-quarter results later this month, stockbrokers said.

Foreign investors sold a net Rs. 7.7 million worth of shares on Monday, extending the net foreign outflow to Rs. 2.97 billion so far this year.

Shares of Nestle Lanka Plc fell 4.15%, while leading fixed-line phone operator Sri Lanka Telecom dropped 1.05%.