(Reuters) - Sri Lankan shares ended slightly weaker on Wednesday as investors offloaded telecommunications and banking stocks on thin volume as many investors and brokers stayed away ahead of holidays, dealers said.
The index ended 0.2 percent, or 13.52 points, weaker at 6,913.73 on Wednesday.
"Telecom shares were down on a taxation effect impacting the counter and there is no major selling or buying ahead of the holidays," said Dimantha Mathew, research manager at First Capital Equities (Pvt) Ltd.
The new government in January budget reduced mobile call rates by shifting the 25 percent tax from customers to the service provider.
The day's turnover was 394.8 million rupees ($2.97 million), well below this year's daily average of 1.13 billion rupees.
The market will be closed on April 13 and April 14 for traditional Sinhala-Tamil new year holiday.
The main stock index had lost 6.6 percent last month, its biggest monthly drop since October 2012 as investors sold their holdings to settle margin trading amid concerns about political stability and a rise in interest rates.
Yields on T-bills rose first time at the Wednesdays auction by 1 to 15 basis points after it had fallen between 55 basis points and 63 basis points in the three weekly auctions through April 1.
Analysts expect trading to stay thin through mid-April ahead of the New Year holiday and amid political uncertainty.
Shares in top mobile phone operator Dialog Axiata Plc fell 1.79 percent, while leading fixed line telephone operator Sri Lanka Telecom Plc declined 2.92 percent.
The index ended 0.2 percent, or 13.52 points, weaker at 6,913.73 on Wednesday.
"Telecom shares were down on a taxation effect impacting the counter and there is no major selling or buying ahead of the holidays," said Dimantha Mathew, research manager at First Capital Equities (Pvt) Ltd.
The new government in January budget reduced mobile call rates by shifting the 25 percent tax from customers to the service provider.
The day's turnover was 394.8 million rupees ($2.97 million), well below this year's daily average of 1.13 billion rupees.
The market will be closed on April 13 and April 14 for traditional Sinhala-Tamil new year holiday.
The main stock index had lost 6.6 percent last month, its biggest monthly drop since October 2012 as investors sold their holdings to settle margin trading amid concerns about political stability and a rise in interest rates.
Yields on T-bills rose first time at the Wednesdays auction by 1 to 15 basis points after it had fallen between 55 basis points and 63 basis points in the three weekly auctions through April 1.
Analysts expect trading to stay thin through mid-April ahead of the New Year holiday and amid political uncertainty.
Shares in top mobile phone operator Dialog Axiata Plc fell 1.79 percent, while leading fixed line telephone operator Sri Lanka Telecom Plc declined 2.92 percent.
Development lender DFCC Bank fell 2.33 percent while Distilleries Co of Sri Lanka Plc edged down 0.84 percent.
(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Anand Basu)
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