Reuters: Shares closed at a near eight-week low on Tuesday, falling for a third straight session, as investors waited for fresh economic policies from the newly-formed Government and as a weaker rupee curbed investor risk appetite.

Rising market interest rates also hit sentiment, stockbrokers said.

The main stock index ended 0.35% lower, or down 25.24 points, at 7,124.25, its lowest close since 16 July.

Turnover slumped to the lowest since 21 July, at Rs. 430.6 million ($ 3.11 million), and well below this year’s daily average of Rs. 1.14 billion.

“Today’s equities wrapped up in red, in lacklustre trade. Investors are awaiting new policy initiatives which are needed to drive the economy forward,” SC Securities said in a note to investors.

A weaker rupee is also weighing on sentiment as most investors have turned cautious until they see signs of the rupee stabilising, traders said.

The rupee fell for the third straight session on Tuesday after central bank last week effectively floated the currency by ceasing to quote its own reference rate.

Foreign investors sold a net Rs. 34.2 million ($ 247,396) worth of shares on Tuesday, extending the year to date net foreign outflow to Rs. 3.45 billion.

Shares in conglomerate John Keells Holdings Plc fell 1.18%, while Commercial Bank of Ceylon Plc fell 1.25%, dragging the index down.