Reuters: Sri Lankan shares ended weaker on Wednesday, slipping from their highest close in more than three-months posted in the previous session, due to month-end settlements, brokers said.
Analysts said turnover was higher on expectations of better economic performance after the government said it would achieve its revenue target for this year.
Sri Lanka's tax revenue in the first seven months jumped 23 percent to 769.8 billion rupees from a year earlier, and Finance Minister Ravi Karunanayake is optimistic about the full-year revenue target, his ministry said on Monday.
Turnover stood at 1.32 billion rupees ($9.08 million), well above this year's daily average of around 753.8 million rupees.
The benchmark Colombo stock index ended 0.23 percent down at 6,588.30, slipping from its highest close since May 20 hit on Tuesday.
"The confidence is returning to the market. We can see that from the turnover levels, but we think the correction will last for another one or two days with the month-end settlements," said Reshan Kurukulasuriya, chief operating officer of Richard Pieris Securities (Pvt) Ltd.
"We are looking at September as a very good month with signs of stability in government policies."
Foreign investors, however, sold a net 236.34 million rupees worth of shares on Wednesday, extending the outflow so far this year to 3.86 billion rupees worth of shares.
They are, however, net buyers of 792.8 million rupees worth of equities so far this month.
Shares of Ceylon Cold Store Plc fell 3.09 percent, while conglomerate John Keells Holdings Plc fell 1.60 percent, dragging the overall index down.
Analysts said turnover was higher on expectations of better economic performance after the government said it would achieve its revenue target for this year.
Sri Lanka's tax revenue in the first seven months jumped 23 percent to 769.8 billion rupees from a year earlier, and Finance Minister Ravi Karunanayake is optimistic about the full-year revenue target, his ministry said on Monday.
Turnover stood at 1.32 billion rupees ($9.08 million), well above this year's daily average of around 753.8 million rupees.
The benchmark Colombo stock index ended 0.23 percent down at 6,588.30, slipping from its highest close since May 20 hit on Tuesday.
"The confidence is returning to the market. We can see that from the turnover levels, but we think the correction will last for another one or two days with the month-end settlements," said Reshan Kurukulasuriya, chief operating officer of Richard Pieris Securities (Pvt) Ltd.
"We are looking at September as a very good month with signs of stability in government policies."
Foreign investors, however, sold a net 236.34 million rupees worth of shares on Wednesday, extending the outflow so far this year to 3.86 billion rupees worth of shares.
They are, however, net buyers of 792.8 million rupees worth of equities so far this month.
Shares of Ceylon Cold Store Plc fell 3.09 percent, while conglomerate John Keells Holdings Plc fell 1.60 percent, dragging the overall index down.
($1 = 145.3000 Sri Lankan rupees)
(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Sunil Nair)
