Monday 2 November 2015

Sri Lankan shares at 2-wk low; turnover slumps

Reuters: Sri Lankan stocks closed weaker on Monday while turnover slumped to a near 3-1/2-month low as investors awaited a key government policy statement and the budget for direction.

The main stock index ended down 0.18 percent at 7,029.07, its lowest close since Oct.19.

The day's turnover was 424.9 million rupees ($3.02 million), the lowest since July. 21 and less than half of this year's daily average of 1.1 billion rupees.

Prime Minister Ranil Wickremesinghe is expected to announce the country's medium term economic policy framework on Nov. 5, outlining the government's economic priorities ahead of the 2016 budget scheduled for Nov. 20.

"Everybody is waiting to see the budget and the prime minister's statement to look at the direction," said Yohan Samarakkody, head of research at SC Securities (Pvt) Ltd.

"The economic direction is what is badly needed for now."

Shares in Bukit Darah Plc fell 6.56 percent while People's Leasing & Finance Plc dropped 4.13 percent, leading the fall in the overall index.

Foreign investors, who have been net sellers of 3.68 billion rupees worth of equities so far this year, bought a net 21.4 million rupees worth shares on Monday. 

($1 = 140.7000 Sri Lankan rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Sunil Nair)

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