Sri Lankan stocks at 3-month closing low; govt policies, budget eyed

Reuters: Sri Lankan shares fell for a third straight session and closed at their lowest level in three months on Thursday as investors waited for clues from government policies and budget, brokers said.

The main stock index ended 0.14 percent, or 9.87 points, weaker at 7,030.45, its lowest closing since July 14.

Analysts said a government move to implement a budget proposal of a retrospective tax targeting corporates is the main concern for investors.

"The supper gain tax is the cloud that is prevalent," said Yohan Samarakkody, head of research at SC Securities (Pvt) Ltd.

"Economic and policy uncertainty is also a reason for investors to take a step back and look for direction. The situation will be gloomy till the budget."

Analysts said investors were cautious ahead of Prime Minister Ranil Wickremesinghe's policy statement next month outlining his government's economic priorities and the government budget in November.

Turnover stood at 824.9 million rupees ($5.88 million), compared with this year's daily average of 1.11 billion rupees.

Foreign investors, who have been net sellers of 2.77 billion rupees worth of equities so far this year, bought a net 205.9 million rupees worth of shares on Thursday.

Shares of Ceylon Beverage Holdings Plc fell 6.86 percent, while People's Leasing & Finance Plc dropped 2.33 percent and Dialog Axiata Plc fell 0.90 percent.

($1 = 140.2000 Sri Lankan rupees) 

(Reporting by Ranga Sirilal; Editing by Subhranshu Sahu)

CHCL’s holdings on TAP increases to 56%

By Paneetha Ameresekere

Ceylon Finance Today: CHC Investments (Pvt.) Ltd. (CHCL) and connected parties will see their holdings in 'controversial' Taprobane Holdings plc (TAP) increase by 77.06% (242.29 million shares) to 556.7 million shares, constituting 55.52% of TAP's ordinary shares, on a mandatory offer made to buy all of its shares on 15 September, 2015; CHCI's secretaries informed the Colombo Stock Exchange (CSE).

The mandatory offer closed on Monday (12 October). CHCI with parties acting in concert held 314.41 million shares of TAP prior to the mandatory offer. TAP's shares closed unchanged at Rs 5.50 a share at the end of Tuesday's trading.

During the era of the previous regime, one of Taprobane's former directors Dinal Wijemanne was allegedly involved in the sale of The Finance Company, a struggling finance company, shares, apparently at an exorbitant price. It was bought by State owned NSB, which bank's chairman then was Pradeep Kariyawasam, husband of the sitting Chief Justice at that time, Shirani Bandaranayake. The deal was subsequently reversed due to public protests. 

www.ceylontodat.lk

Ashok strengthens hold in Asiri

By Paneetha Ameresekere

Ceylon Finance Today: Asiri Holdings plc, a company controlled by business magnate Ashok Pathirage, saw some 240,000 of its shares bought by its sister company...

Softlogic Holdings plc for a sum of Rs 5.16 million.

Softlogic too is controlled by Pathirage. The deals were done at prices of Rs 21.30 and Rs 21.50 per share respectively. Asiri Hospital's shares closed at Rs 21.50 a share, on Tuesday, unchanged over its previous day's close. 

www.ceylontoday.lk