Shares fall for 7th session to post 1-mth closing low

Wednesday, 19 October 2016 00:01 - - {{hitsCtrl.values.hits}}

Reuters - Shares fell for a seventh straight session on Tuesday and posted their lowest close in a month as cautious investors awaited a flurry of corporate results and next month’s national budget, while fresh political concerns also weighed on sentiment, brokers said.

The benchmark index of the Colombo Stock Exchange ended 0.15% weaker at 6,442.87, its lowest close since 20 September.

“Investor sentiment will be the same until the budget next month. The market is also concerned about political stability after the president’s speech last week,” said a stockbroker, asking not to be named.

The head of Sri Lanka’s anti-corruption body resigned on Monday, days after President Maithripala Sirisena implied her agency was favouring the rival party of his prime minister.

This is likely to delay one of the promises of Sirisena’s coalition government of eliminating corruption and implementing rule of law and might have an adverse impact on business confidence, analysts said.

Turnover stood at Rs. 389.6 million ($ 2.65 million), compared with this year’s daily average of around Rs. 743 million.

Foreign investors, who have sold a net Rs. 2.24 billion worth of shares so far this year, bought a net Rs. 98.2 million worth equities on Tuesday.

Blue chips John Keells Holdings Plc fell 0.66%, while top fixed-line phone operator Sri Lanka Telecom Plc dropped 1.63%.

Sri Lanka’s quarterly earnings season started last week but the bulk of locally listed firms will not report until late October or early November.