Stocks end steady; policy clarity awaited

Friday, 9 October 2015 00:00 - - {{hitsCtrl.values.hits}}

Stocks ended little changed on Thursday as gains in beverages and diversified shares helped offset losses in banking stocks, with investors waiting for direction on economic policy from the Government, brokers said.

Prime Minister Ranil Wickremesinghe is expected to make a statement next month outlining the economic priorities of the newly-formed Government, before the country presents its Budget for the next fiscal year, which is estimated to show a Rs. 1.35 trillion borrowing requirement from both foreign and domestic sources.

Sri Lanka’s 2016 total expenditure is estimated at Rs. 3.14 trillion ($22.36 billion) while the total revenue, including foreign grants, is estimated at Rs. 1.79 trillion, a Cabinet spokesman said on Thursday.

The main stock index ended 0.20 points firmer at 7,085.65, nearly unchanged from Wednesday’s close.

“The (market) ended flat for the day amid improved turnover. Buying in select manufacturing, banking, and food and beverage counters dominated turnover levels,” John Keells Stock Brokers Ltd. said in a note to investors.

Foreign investors sold a net Rs. 22.04 million ($156,980.06) worth of shares on Thursday, extending the year-to-date net foreign outflow to Rs. 3.05 billion.

Turnover stood at Rs. 849.7 million, compared with this year’s daily average of Rs. 1.11 billion.

Gains in conglomerate John Keells Holdings Plc, which rose 1.17%, offset losses in Lanka ORIX Leasing Company Plc which fell 2.43% and Commercial Leasing & Finance Plc, which lost 4.88%.