Shares steady at near 3-month low

REUTERS: Sri Lankan shares closed steady yesterday, after three straight losing sessions, as gains led by financials were offset by losses in mid-cap stocks.
The Colombo Stock Index firmed 0.03 percent at 6,382.95, hovering around a near three-month closing low hit in the previous session.Sampath Bank and Commercial Bank of Ceylon gained 1.3 percent and 0.2 percent, respectively, while shares in Asian Hotels and Properties Plc fell 6.7 percent.

“We see a typical year-end market. Foreign investor interest continues,” said Hussain Gani, deputy CEO at Softlogic Stockbrokers.

Foreign trade accounted for 56 percent of the day’s turnover worth Rs.986 million (US$ 6.43 million), higher than this year’s daily average of Rs.944.4 million.
Foreign investors, who have been net buyers of Rs.18.57 billion worth of shares so far this year, were net sellers of equities worth Rs.37.5 million yesterday.
Worries over a delay in local council polls and a lack of clarity over the budget and two other key policy measures weighed on sentiment, analysts said.

The Election Commission said on Monday that the council polls would be held before Feb. 17, amid concerns over political stability as coalition partners in President Maithripala Sirisena’s government had decided to contest separately in the council polls.

Investors are also seeking more clarity on new taxes imposed in the 2018 budget presented last month, analysts said, adding there could be some amendments before the final budget vote scheduled for Dec. 9.