Stocks extend run of declines, hit near 6-week closing low
Sri Lankan shares fell for a third straight session yesterday to their lowest close in near six weeks, weighed down by declines in telecom and banking stocks after the island nation targeted both cash-rich sectors in its 2018 budget to boost revenue.
The Colombo stock index ended 0.63 percent weaker at 6,511.55, its lowest close since October 4. Last week it dropped one percent.
The market was dominated by foreign investors who accounted for 86 percent of the day’s buying.
The net bought shares worth Rs.570.1 million, extending the net foreign inflow in equities to Rs.18.7 billion so far this year.
Finance Minister Mangala Samaraweera imposed new taxes on motor vehicles, telecoms, banks and liquor in a bid to boost revenues in its 2018 budget outlined on Thursday, as the budget deficit for the current year slipped to 5.2 percent of the gross domestic product.