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Sri lanka News – Sri Lanka stocks closed weaker for a fourth straight session on Tuesday due to panic selling as investors awaited for cues for the policies of 2023 budget budget which is scheduled to be presented next week, brokers said.

The main All Share Price Index (ASPI) lost 2.64 percent or 224.03 points to close at 8,267.77, its lowest close since August 04.

“ASPI commenced the week on a negative note while recording its highest intraday loss in 1-month as dull sentiment extended over panic selling,” First Capital Market Research said in its daily note.

Analysts say the market will remain bearish until the budget for 2023 is presented on November 14, but expect to see a bullish sentiment in January.

The market saw a turnover of 1.1 billion rupees, lower than this year’s average turnover of 3.1 billion rupees.

Investors are also concerned over the impact of local debt restructuring on risky assets, analyst have said as the market is  waiting for debt restructuring decision between the government and its creditors ahead of an IMF loan approval.

The market is taking a wait and see approach after the tax proposals were published. The corporate tax rates are expected to be increased to 30 percent.

The market saw net foreign inflows of 82 million rupees. The total net foreign inflow so far for this year is 18.7 billion rupees.

The more liquid index S&P SL20 closed 2.58 percent or 66.60 points lower at 2,518.83.

The ASPI has fallen 3.8 percent in so far in November after losing 13.4 percent in October. It has lost 32.3 percent year-to-date after being one of the world’s best stock markets with an 80 percent return last year when large volumes of money were printed.

The listed companies have shown reasonable profits in their third quarter of the year, however, analysts say the disposable income of the general public due to proposed tax hikes is the main reason for the negative expectations over the December earnings.

Expolanka, leading the index fall, closed 7.4 percent lower at 153.5 rupees a share.

Lanka IOC fell 5.8 percent to 170.3 rupees a share while Richard Pieris closed 5.4 percent weaker at 24.7 rupees a share. (Colombo/Nov08/2022)

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