Stocks fall to 2-wk closing low; cbank rate move, budget awaited

REUTERS: Sri Lankan shares fell yesterday to a two-week closing low as investors awaited the Central Bank’s monetary policy decision and the national budget presentation scheduled this week.

The Colombo stock index closed 0.28 percent weaker at 6,602.72, its lowest since October 24.

“It was a dull trade as local retail investors were awaiting for direction from the budget. The September quarterly earnings are also either flat or negative, which also failed to boost the sentiment,” said Acuity Stockbrokers CEO Prashan Fernando.

Sampath Bank lost 1.3 percent, while Nestle Lanka fell 0.6 percent.

Finance Minister Mangala Samaraweera will present the 2018 budget on Thursday.
The Central Bank is expected to keep its key interest rates steady today to support the sluggish economy despite a pick-up in inflation amid strong credit growth, a Reuters poll showed.

Foreign investors bought shares net worth Rs.15.8 million, extending the year-to-date net inflows to Rs.20.4 billion in equities. The session’s turnover was Rs.588.3 million, lower than this year’s average daily turnover of Rs.941.1 million.