Taxes send motor stock prices down

Tuesday, 3 April 2012 01:40 - - {{hitsCtrl.values.hits}}

As a direct result of rise in taxes, share prices of motor stocks dipped yesterday as investors lost heart.

DIMO and Colonial Motors figured among top losers percentage wise. Both stocks were down by over 15% whilst United Motors too dipped. Overall motor sector’s price index declined by over 8%.

“The sector earnings are likely to be seriously hit during 2012 due to the increase in vehicles taxes,” Arrenga Capital said.

“Motor sector counters witnessed negative sentiments presumably following the steep hike in imposed over the weekend,” NDB Stockbrokers added.

Meanwhile, with the announcement of a price increase in cigarettes following the government tax hike for tobacco & alcohol, Ceylon Tobacco saw its price touching a further 52 – week high of Rs. 540. The counter closed at a similar price with a solid 4.8% gain, in addition to enjoying foreign buying.