Sri Lankan stocks ended sharply lower on Monday as local small investors sold shares across the board, but trading volumes were low as many investors marked time ahead of the 2005 budget looming on November 18, traders said. The key Colombo all-share index fell a provisional 2.24 percent, or 33.47 points, to 1,461.21 points.
The bourse has gained over 37 percent so far this year on upbeat corporate earnings and a strong leisure sector, and posted a string of record all-time highs in October.
The all-share peaked at a closing high of 1,560.84 points on October 22.
The Milanka index which tracks the most liquid and highly capitalised stocks - fell 2.84 percent, or by 60.44 points, to 2,067.51 points.
"The market is lethargic. Only small quantities are moving. I think this is how it is going to be until the budget," said Hussain Gani, a borker with John Keells Stockbrokers. Some investors fear the budget, which the government has said will focus public investment on rural development projects and aims to slash a government revenue shortfall, could contain tax hikes on the corporate sector.
Aitken Spence Hotel Holdings Ltd fell 0.95 percent on retail selling to 104 rupees a share.
Shares in blue chip Sri Lanka Telecom Ltd, the Indian ocean island's largest fixed line operator, fell by 4.48 percent, to 16.00 rupees a share and conglomerate John Keells Holdings Ltd ended 3.2 percent lower at 106.00 rupees a share. Market turnover was below the daily average at 155 million rupees with foreign purchases of 19 million rupees and foreign sales totalling 5 million rupees.
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