Sri Lanka stocks close down 0.2-pct; Banking and finance losses following CB directive

Sep 16, 2015 (LBO) – Sri Lankan stocks closed down 0.21 percent on Wednesday with losses in the banking and finance stocks following a Central Bank directive to banks to reduce loan ratio on motor vehicles, brokers said.

The Colombo benchmark All Share Price Index closed down 15.03 points at 7,137.40 lower 0.21 percent.

S&P SL20 closed 15.50 points lower at 3,899.63 down 0.40 percent.

“The much anticipated Fed policy meeting, the domestic economic concerns along with the outcome of the UNHRC meeting are seemingly keeping the investors on the sidelines,” Lanka Securities said.

.”Yesterday’s CB announcement to reduce loan ratio on motor vehicles seem to have a impact on the banking finance stocks.”

Sri Lanka’s Central Bank has issued a directive to commercial banks, speciaized banks and financial institutions to reduce the loan to value (LTV) ratio to 70 percent in respect of loans granted for purchases or utilisation of motor vehicles.

Turnover was 771 million rupees, up 613 million rupees, Tuesday with 66 stocks closing positive against 89 negative.

Kelani Tyre was the highest turnover contributor for the day with 119 million rupees

The foreign participants were net buyers resulting in net foreign inflow of 47 million rupees.

(updated)