ECONOMYNEXT – Sri Lanka shares slipped on Monday for the first time in four sessions and the turnover was thin on muted sentiments ahead of the 2023 budget, brokers said.
The main All Share Price Index (ASPI) closed 0.66 percent or 55.77 points lower at 8,363.29.
“After three consecutive days in green, ASPI closed the day in red as retailers chose to remain sidelined awaiting direction from the budget 2023 which was scheduled for today,” First Capital Market Research said in it’s daily note.
The market saw a turnover of 941 million rupees, less than a third of this year’s daily average turnover of 3.0 billion rupees.
The market saw a foreign outflow of 23 million rupees. But the market has seen a total net foreign inflow of 17.7 billion rupees so far for this year.
Analysts expect a bearish sentiment on banking sector to continue until the government decide on local debt restructuring.
The market has been on a falling trend as investors awaited for cues on policies from the 2023 budget.
Investors are also concerned over the impact of local debt restructuring on risky assets, analysts have said, as the market is waiting for a debt restructuring decision between the government and its creditors ahead of an IMF loan approval.
The more liquid index S&P SL20 closed 0.53 percent or 13.57 points lower at 2,566.61.
The ASPI has fallen 2.7 percent so far in November after losing 13.4 percent in October. It has lost 31.5 percent year-to-date after being one of the world’s best stock markets with an 80 percent return last year when large volumes of money were printed.
The listed companies have shown reasonable profits in their third quarter of the year, however, analysts say the disposable income of the general public due to proposed tax hikes is the main reason for the negative expectations over the December earnings.
Expolanka, dragging the index down most, ended 3.4 percent lower at 148 rupees a share.
LOLC fell 3.6 percent to 383 rupees and Aitken Spence closed 2.9 percent weaker at 130.7 rupees a share. (Colombo/Nov14/2022)