Stock market down ahead of Govt. policy statement

Reuters: Shares ended weaker on Monday, from their more than three-week closing high hit in the previous session, as investors turned cautious ahead of the Government’s policy statement next month.

The Bourse touched a three-week high on Friday after investor sentiment was boosted with Sri Lanka raising $ 1.5 billion in its first sale of dual-tranche eurobonds last week, as over $ 5.5 billion in offers for the issue showed that global investors were bullish about prospects of the $ 82 billion economy.

After the bond deal, yields in local T-bill auction fell along with the 364-day T-bill rates at Wednesday’s auction for the first time since 15 April.

The benchmark Colombo stock index in thin trade ended down 0.11% or 6.88 points at 6,415.81, slipping from its highest since 21 June hit on Friday. It gained 0.9% last week.

“There was nothing much happening today. Probably, investors were awaiting the Prime Minister’s policy statement to see the direction,” said Dimantha Mathew, head of research, First Capital Equities Ltd.

Prime Minister Ranil Wickremesinghe is expected to announce the country’s economic policies in August, said new Central Bank chief Indrajith Coomaraswamy last week.

Turnover stood at Rs. 357.5 million ($ 2.46 million), well below this year’s daily average of around Rs. 738.3 million.

Overseas investors, who were net sellers of shares worth Rs. 4.92 billion so far this year, were net buyers of equities worth Rs. 134 million on Monday.

Shares in Lanka ORIX Leasing Company Plc fell as much as 2.72% while the biggest-listed lender Commercial Bank of Ceylon Plc lost 0.77%.