Bourse falls to near 11-week low

Reuters: Shares fell on Monday to a near-11-week low hit last week led by large-cap shares such as Nestle Lanka Plc and Ceylon Tobacco Company Plc on political uncertainty ahead of Parliamentary elections.

The main stock index ended 0.25% weaker at 6,989.41, hovering near its lowest close since 15 April hit on Thursday.

The day’s turnover was Rs. 453.5 million ($3.40 million), well below this year’s daily average of Rs. 1.07 billion.

Shares in Nestle Lanka Plc fell 3.06% while Ceylon Tobacco Company Plc fell 0.52%, dragging the overall index.

President Maithripala Sirisena dissolved Parliament on 26 June and scheduled elections for 17 August, in an effort to consolidate power and push through political reforms.

The market saw a net foreign outflow of Rs. 88.5 million on Monday, extending the net outflow for the past 28 sessions to Rs. 4.7 billion.

However, foreign investors are net buyers of Rs. 1.25 billion worth of shares so far this year.