Fears over increased corporate income tax dampen bourse

By Hiran H.Senewiratne

CSE trading was negative yesterday due to investor worries over Inland Revenue Department experts recommending tax increases in the forthcoming budget for corporate sector entities, market analysts said.

Shares edged- down in mid- day trade and ended on a negative note moving both indices to a downward trend. The All Share Price Index went down by 88.62 points and S and P SL20 declined by 27.62 points. Turnover stood at Rs 659 million with one crossing. The crossing was reported in Sampath Bank, which crossed 300,000 shares to the tune of Rs 21.18 million; its shares traded at Rs 70.60.

In the retail market top seven companies that mainly contributed to the turnover were, Tokyo Cement (Voting) Rs 64.4 million (1.15 million shares traded), Sampath Bank Rs 45 million (643,000 shares traded), Expolanka Holdings Rs 40.9 million (290,000 shares traded), Capital Alliance Rs 34.9 million (438,000 shares traded), Kingsbury Hotel Rs 27.96 million (2.2 million shares traded), Access Engineering Rs 24.6 million (1.2 million shares traded) and Hayley Fabrics Rs 18.5 million (392,000 shares traded). During the day 25.9 million share volumes changed hands in 10000 transactions.

Yesterday, the rupee opened at Rs 323.25/324.00 to the US dollar after closing at Rs 323.25/75 to the US dollar on Friday, dealers said.

A bond maturing on 01.08.2026 closed stable at 14.00/15 percent from 14.00/10 percent. A bond maturing on 15.09.2027 closed down at 13.80/14.00 percent from 13.85/95 percent a day earlier. A bond maturing on 01.05.2028 closed down at 13.50/70 from 14.50/70 percent a day earlier.