Sri Lanka shares down for sixth session; Brexit woes weigh
COLOMBO, June 27 (Reuters) – Sri Lankan shares fell for a sixth straight session on Monday as investors turned cautious after the UK last week voted to leave the European Union.
The benchmark Colombo stock index ended down 0.81 percent at 6,318.21, its lowest close since April 11.
Sterling fell more than 2 percent, the euro took a hammering and stocks dropped again on Monday as Brexit drove investors to seek safety in the yen, gold and low-risk government debt.
"Market is down with the post-Brexit effects. There are no foreigners or big investors in the market. It’s all in the hands of retailers," said Yohan Samarakkody, head of research, SC Securities (Pvt) Ltd.
Local negatives like high interest rates and lack of clarity on the proposed capital gains tax also had an impact on the market, he said.
Sri Lanka’s cabinet on June 15 approved a proposal to reintroduce capital gains tax, especially on land sales.
Overseas funds offloaded 142.6 million rupees ($970,068) worth of equities on Monday, extending the year-to-date net foreign outflow to 6.17 billion rupees worth of shares.
Turnover stood at 566.2 million rupees, less than this year’s daily average of around 747.2 million rupees.
Shares in Bukit Darah Company Plc fell 9.92 percent while Sri Lanka Telecom Plc fell 2.11 percent. Biggest-listed lender Commercial Bank of Ceylon Plc lost 0.90 percent.