Mar 25, 2019

Share index falls to lowest in six years Featured

The share index fell for a fourth straight session last Thursday to the lowest level in six years and three months closing low.

On March 21st (Thursday’s) close the Colombo Stock Exchange index fell 0.36 percent to 5,571.30, hovering near its lowest close since Dec. 26, 2012.

Further, the benchmark stock index fell 1.85 percent last week, recording its sixth straight weekly drop. It has declined 7.95 percent so far this year.

Among all companies listed on the Colombo Stock Exchange the top 20 Companies with high liquidity and performance S&P SL20 index, at the start of this year stood at 3,111.07 units, but it has dropped to 2,741.31 units. This is a decline of 12.56 during the period from the beginning of this year to March 21.

Meanwhile, during a business forum in Colombo last week, Prime Minister Ranil Wickremesinghe said his government was watchful of the stock market, adding that there is much that needs to be done to restore it to its past glory.

The Prime Minister also noted that plans are to invest the EPF funds in the stock market again.

However, expressing his views, billionaire businessman Dammika Perera said the Stock Market decline is inevitable at a time when many of the companies are recording losses. He noted that the main reason is the taxes imposed on companies, adding that the banking sector taxes stand at 63%.