Jan 21 (Reuters) - Sri Lankan shares fell to a three-week low on Wednesday amid low trading volumes as concern over political stability weighed on sentiment while investors awaited the new government's interim budget scheduled for next week.
The main stock index ended 0.6 percent lower, or down 44.10 points, at 7,324.40, its lowest since Dec. 31.
The day's turnover was 796.3 million rupees ($6.04 million), less than last year's daily average of 1.42 billion rupees, exchange data showed.
President Maithripala Sirisena's coalition has promised a 100-day programme to restore democracy and reform the economy before he dissolves parliament for a general election after April 23.
Sirisena's government will present an interim budget on Jan. 29 with an aim to cut cost of living.
"Local and foreign investors are waiting to see some kind of direction from the budget, especially on interest rates and foreign exchange rates," said a stockbroker.
Yields on short-term government securities edged up 1 basis point at Wednesday's auction of government securities.
Conglomerate John Keells Holdings Plc fell 2.38 percent and Caltex Lubricant Lanka Plc lost 3.99 percent, dragging down the index.
After the market closed, a government minister said the new administration had reappointed Thilak Karunaratne as chief of the Securities and Exchange Commission (SEC).
Karunaratne has been tasked with investigating past stock market deals suspected to involve corruption.
Stockbrokers said Karunaratne's appointment and the investigations would pull down the index down in the near term, but would instil confidence over the longer term.
Foreign investors, who bought a net 22.07 billion rupees worth of stocks last year, were net buyers of 69.1 million rupees worth shares on Wednesday.
($1 = 131.7500 Sri Lankan rupees) (Reporting by Ranga Sirilal and Shihar Aneez; Editing by Biju Dwarakanath)
The main stock index ended 0.6 percent lower, or down 44.10 points, at 7,324.40, its lowest since Dec. 31.
The day's turnover was 796.3 million rupees ($6.04 million), less than last year's daily average of 1.42 billion rupees, exchange data showed.
President Maithripala Sirisena's coalition has promised a 100-day programme to restore democracy and reform the economy before he dissolves parliament for a general election after April 23.
Sirisena's government will present an interim budget on Jan. 29 with an aim to cut cost of living.
"Local and foreign investors are waiting to see some kind of direction from the budget, especially on interest rates and foreign exchange rates," said a stockbroker.
Yields on short-term government securities edged up 1 basis point at Wednesday's auction of government securities.
Conglomerate John Keells Holdings Plc fell 2.38 percent and Caltex Lubricant Lanka Plc lost 3.99 percent, dragging down the index.
After the market closed, a government minister said the new administration had reappointed Thilak Karunaratne as chief of the Securities and Exchange Commission (SEC).
Karunaratne has been tasked with investigating past stock market deals suspected to involve corruption.
Stockbrokers said Karunaratne's appointment and the investigations would pull down the index down in the near term, but would instil confidence over the longer term.
Foreign investors, who bought a net 22.07 billion rupees worth of stocks last year, were net buyers of 69.1 million rupees worth shares on Wednesday.
($1 = 131.7500 Sri Lankan rupees) (Reporting by Ranga Sirilal and Shihar Aneez; Editing by Biju Dwarakanath)
No comments:
Post a Comment