Sri Lanka shares fall; budget uncertainty lingers

COLOMBO, Nov 11 (Reuters) – Sri Lankan shares fell for a second session on Wednesday to their lowest in nearly a week despite foreign buying, while speculation and uncertainty over the upcoming budget dented sentiment.

Brokers said investors kept to the sidelines, awaiting policy direction from the annual budget scheduled for Nov. 20.

The main stock index ended down 0.44 percent at 7,019.23, its lowest close since Nov. 5.

"It’s a dull day. Investors want to see the policy direction. They are waiting to see the next year horizon. The Nov. 20 budget will be the next catalyst," said Yohan Samarakkody, head of research at SC Securities (Pvt) Ltd.

Foreign investors, who have been net sellers of 3.64 billion rupees worth of equities so far this year, bought a net 125.6 million rupees worth of shares on Wednesday.

The day’s turnover was 545.4 million rupees ($3.84 million), about half of this year’s daily average of 1.1 billion rupees.

Chevron Lubricants Lanka Plc fell 2.77 percent, dragging the overall index.(Colombo/November 11 2015)
 

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