Tuesday, 9 December 2014 00:44
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Reuters: Stocks edged up slightly on Monday, erasing early losses in sluggish trade as investors were cautious due to the political uncertainty ahead of the 8 January presidential poll.
The main stock index rose 0.04%, or 2.55 points, to close at 7,241.47.
Turnover was Rs. 611 million ($4.7 million) on Monday, exchange data showed, the lowest since 28 July and well below this year’s daily average of Rs. 1.44 billion.
Foreign investors were net buyers of Rs. 164.9 million worth of shares on Monday, extending purchases during the year to Rs. 21.92 billion, the data showed.
“Investor interest is deteriorating, the market is volatile in low trade, as many are waiting to see the direction as the election nears,” said Dimantha Mathew, Manager, Research at First Capital Equities Ltd.
Analysts said many investors were staying away ahead of the elections and the festive season. Dialog Axiata Plc led the gains, ending up 3.85%, while Ceylon Tobacco Co Plc rose 0.95%.
Analysts expect volatility to continue and the overall index to be flat until the elections on 8 January, with speculation over more defections and likely violence ahead of the polls also weighing on sentiment.
Nine loyalists from Rajapaksa’s United People’s Freedom Alliance, including Health Minister Maithripala Sirisena, have defected since Rajapaksa announced snap elections last week. Sirisena resigned to contest against Rajapaksa as the consensus candidate of a united opposition.
The General Secretary of the main opposition United National Party and another opposition legislator joined Rajapaksa hours after he submitted his nomination on Monday.
Speculation over more defections also weighed on sentiment, analysts said.
