Reuters – Sri Lankan stocks edged down on Monday, led by blue chips on profit-taking, while trading volume fell to a three-week low as investors stayed on the sidelines awaiting direction from the budget and September-quarter corporate results.
The benchmark index of the Colombo Stock Exchange finished 0.3 percent weaker at 6,562.50.
Turnover was 336.2 million rupees ($2.30 million), the lowest since Sept. 19, and less than half of this year’s daily average of around 751 million rupees.
Investors are not willing to sell at lower prices, resulting in lower volume, said Prashan Fernando, CEO at Acuity Research.
Stockbrokers said the market might see lower trading volumes as many investors await direction from the budget, scheduled on Nov. 10, and the government’s long-term economic policy announcement.
“Investors will make their moves depending on corporate earnings in the September quarter,” Fernando added.
A number of companies are expected to report their September-quarter results later this month, stockbrokers said.
Foreign investors sold a net 7.7 million rupees worth of shares on Monday, extending the net foreign outflow to 2.97 billion rupees so far this year.
Shares of Nestle Lanka Plc fell 4.15 percent, while leading fixed-line phone operator Sri Lanka Telecom dropped 1.05 percent.