Friday, 11 September 2015 16:49
COLOMBO: Sri Lankan shares edged down on Friday in light trade for a second session, led by falls in banking and telecommunication shares, as a weakening rupee and high interest rates prompted investors to cut their positions in risky assets, brokers said.
Trading volume remained low as investors awaited cues from the policy of the new government.
The main stock index ended 0.09 percent or 6.45 points weaker at 7,153.49.
Turnover stood at 474.6 million rupees ($ 3.4 million), well below this year’s daily average of 1.13 billion rupees.
“Lack of policy direction is the main problem and investors are waiting to see the budget and how the government is going to bridge the budget deficit,” said Dimantha Mathew, a research manager at First Capital Equities (Pvt) Ltd.
“This trend will continue until a clear statement or some sort of a positive signal comes in.”
On Tuesday, the bourse hit a near eight-week low as investors waited for economic policies from the newly formed government.
A weaker rupee curbed investor risk appetite and rising market interest rates also hit sentiment with t-bill yields were at more than five-month high.
Foreign investors sold a net 86.2 million rupees worth shares on Friday extending the year to date net foreign outflow to 3.29 billion rupees worth of equities so far this year.
Shares in biggest listed lender Commercial Bank of Ceylon Plc fell 0.54 percent and Dialog Axiata Plc fell 0.88 percent, dragging down the overall index.
