Sri Lankan shares fell slightly on Friday as gains in oil palm stocks were outpaced by losses in beverage and diversified companies, while investors waited for clarity in the new government’s economic policies.
New President Maithripala Sirisena had appointed his interim Cabinet on Monday and said he would carry out reforms to fight corruption in the 100 days to a parliamentary election.
Sirisena has promised a 100-day programme to restore democracy and the economy before he dissolves Parliament for a general election after April 23.
Ranil Wickremesinghe, leader of the pro-business United National Party, has been appointed as the Prime Minister, boosting investor sentiment.
The main stock index was 0.29 per cent or 21.99 points, weaker at 7,527.86 at 0724 GMT. It hit a near four-year closing high on January 9.
“It looks like the political uncertainty is settling down with the new president getting support from all parties. But investors are waiting to see the economic policies of the new government,’’ said Dimantha Mathew, manager, research at First Capital Equities (pvt) Ltd.
Stock market turnover was 647.3 million rupees ($4.93 million) at 0724 GMT, exchange data showed.
Rupee forwards
Rupee forwards traded weaker on importer dollar demand and lower selling of the greenback by exporters, dealers said.
Actively traded four-day forwards were at 132.45/55 per dollar at 0700 GMT, compared with Tuesday’s close of 132.25/35, dealers said.
Markets were closed on Wednesday for a special holiday in view of Pope Francis’ visit and on Thursday for a Hindu religious holiday.
Three-day forwards or spot next were traded at 132.40/50 per dollar compared with Tuesday’s close of 132.35/45. ($1 = 131.2000 Sri Lankan rupees)