Sri Lankan stocks fall for 4th day to over 3-month closing low

COLOMBO, Oct 16 (Reuters) – Sri Lankan shares fell for a fourth straight session and closed at their lowest level in more than three months on Friday as investors waited for clues from government policies and budget, brokers said.

The main stock index ended 0.14 percent, or 9.71 points, weaker at 7,020.74, its lowest close since July 13.

Analysts said a government move to implement a budget proposal of a retrospective tax targeting corporate is the main concern for investors.

"Bad stories about the budget are dragging the market lower and we have seen a state fund also selling, that too prevented other investors from entering," said a stock broker asking not to be named.

Analysts said investors were cautious ahead of Prime Minister Ranil Wickremesinghe’s policy statement next month outlining his government’s economic priorities and the government budget in November.

Turnover stood at 524.9 million rupees ($3.74 million), compared with this year’s daily average of 1.1 billion rupees.

Foreign investors, who have been net sellers of 2.73 billion rupees worth of equities so far this year, bought a net 36.6 million rupees worth of shares on Friday, extending the net foreign inflow in the past three sessions to 349.3 million rupees worth of equities.

Shares of Bukit Darah Plc fell 3.21 percent, C T Holdings Plc declined 3.29 percent and People’s Leasing & Finance Plc dropped 2.38 percent.  (Colombo/October 16 2015)
 

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