Reuters: Sri Lankan shares ended near 11-week lows on Monday led by diversified and banking shares on concerns of a retrospective tax on corporates, brokers said.
The main stock index closed down 0.45 percent at 7,078.64, its lowest close since July 15.
"The index fell because of the government's move to impose a retrospective tax on corporates that had earned more than 2 billion rupees in profit last year," said a stockbroker on condition of anonymity.
"But the turnover is high because some investors are gradually taking positions."
Finance Minister Ravi Karunanayake last week tabled finance bills to raise 80 billion rupees in revenues, including from a super gain tax to be paid by corporates that earned more than 2 billion rupees in the last financial year.
Shares of Ceylon Tobacco Company Plc fell 0.58 percent, while biggest listed lender Commercial Bank of Ceylon Plc dropped 0.91 percent.
Turnover was 1.88 billion rupees ($13.34 million), the highest since Aug. 26 and more than the daily average of 1.12 billion rupees. The turnover has been roughly half of this year's daily average since Aug. 31, stock exchange data showed.
On Monday, the central bank chief said he would not rule out a possible rate hike if credit grew faster.
Analysts said investors were waiting to see how the government would bridge the budget deficit and where the revenue would come from, in its November budget.
The IMF on Sept. 18 said the fiscal deficit is likely to range between 5.5 percent and 6 percent in 2015, much higher than an official target of 4.4 percent, due to falling government revenues.
Foreign investors were net sellers of 630 million rupees worth of shares on Monday, extending the year-to-date net foreign outflow to 3.12 billion rupees.
($1 = 140.8800 Sri Lankan rupees)
The main stock index closed down 0.45 percent at 7,078.64, its lowest close since July 15.
"The index fell because of the government's move to impose a retrospective tax on corporates that had earned more than 2 billion rupees in profit last year," said a stockbroker on condition of anonymity.
"But the turnover is high because some investors are gradually taking positions."
Finance Minister Ravi Karunanayake last week tabled finance bills to raise 80 billion rupees in revenues, including from a super gain tax to be paid by corporates that earned more than 2 billion rupees in the last financial year.
Shares of Ceylon Tobacco Company Plc fell 0.58 percent, while biggest listed lender Commercial Bank of Ceylon Plc dropped 0.91 percent.
Turnover was 1.88 billion rupees ($13.34 million), the highest since Aug. 26 and more than the daily average of 1.12 billion rupees. The turnover has been roughly half of this year's daily average since Aug. 31, stock exchange data showed.
On Monday, the central bank chief said he would not rule out a possible rate hike if credit grew faster.
Analysts said investors were waiting to see how the government would bridge the budget deficit and where the revenue would come from, in its November budget.
The IMF on Sept. 18 said the fiscal deficit is likely to range between 5.5 percent and 6 percent in 2015, much higher than an official target of 4.4 percent, due to falling government revenues.
Foreign investors were net sellers of 630 million rupees worth of shares on Monday, extending the year-to-date net foreign outflow to 3.12 billion rupees.
($1 = 140.8800 Sri Lankan rupees)
(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Sunil Nair)
No comments:
Post a Comment