Shares fall to over 1-week low amid Budget uncertainty

Reuters: Shares edged down on Friday, losing for a fourth straight session to their lowest level in more than a week, led by large caps as speculation and uncertainty over the upcoming budget dented investor sentiment.

Brokers said the day’s trading volume was low because investors were on the sidelines awaiting policy direction from the annual Budget scheduled for 20 November. This week’s daily average turnover was around Rs. 600 million, around half of this year’s daily average.

The main stock index ended down 0.06%, or 4.54 points, at 7,001.81, its lowest close since 3 November.

“Still the uncertainty remains with regard to the Government’s economic policy and stability over fulfilling its election promises,” said Danushka Samarasinghe, Research Head at Softlogic Stockbrokers in Colombo.

Foreign investors were net sellers of Rs. 54.6 million worth of equities on Friday, extending the year to date net foreign outflow to Rs. 3.6 billion worth of shares.

The day’s turnover was Rs. 779.4 million, less than this year’s daily average of Rs. 1.1 billion.

Shares in Trans Asia Hotels Plc fell 8.55% with only 407 shares changing hands, while Nestle Lanka Plc fell 1.14% and Commercial Bank of Ceylon Plc lost 0.65%, dragging down the overall index.