(Reuters) - Sri Lankan shares edged up on Monday, ending a five-session falling streak, but turnover slumped to near a 5-year low as investors were cautious ahead of a U.N. resolution on the island nation's human rights record later this month.
The day's turnover fell to 2009 levels when the island nation was in the final days of a 26-year civil war with Tamil separatists. Turnover was 90.9 million rupees ($696,300), the lowest since April 30, 2009, less than a tenth of this year's daily average of about 921.3 million rupees.
Analysts said investor sentiment has been dented on concerns over the U.N. resolution, which could have an impact on the country's economy. Many potential buyers in risky assets are staying on the sidelines for want of clear direction.
"Now, foreign investors are also holding back because there is no liquidity in the market," Danushka Samarasinghe, head of TKS research, told Reuters.
The main stock index rose 0.3 percent, or 17.88 points to 5,914.11, edging up from its lowest close since Feb. 26 led by large caps.
Ceylon Tobacco Co Plc shares rose 1.83 percent to 1,120 rupees with just one share changing hands, while Ceylinco Insurance Plc rose 7.40 percent to 1449.90 rupees with just nine shares traded, Thomson Reuters data showed.
Foreign investors were sellers for the second straight session, with net selling of 4.89 million rupees worth of shares on Monday. But they have been net buyers of 220 million rupees worth of shares in the last nine sessions.
Net outflows so far in 2014 stand at 3.82 billion rupees. They were 22.88 billion rupees in 2013.
Earlier this month, Sri Lanka questioned the independence of the human rights office of the United Nations after the United States asked it to investigate violations by the Sri Lanka government related to the civil war. A vote on the resolution is scheduled for the last week of the session, starting on March 24.
($1 = 130.6050 Sri Lanka Rupees)
(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Prateek Chatterjee)
The day's turnover fell to 2009 levels when the island nation was in the final days of a 26-year civil war with Tamil separatists. Turnover was 90.9 million rupees ($696,300), the lowest since April 30, 2009, less than a tenth of this year's daily average of about 921.3 million rupees.
Analysts said investor sentiment has been dented on concerns over the U.N. resolution, which could have an impact on the country's economy. Many potential buyers in risky assets are staying on the sidelines for want of clear direction.
"Now, foreign investors are also holding back because there is no liquidity in the market," Danushka Samarasinghe, head of TKS research, told Reuters.
The main stock index rose 0.3 percent, or 17.88 points to 5,914.11, edging up from its lowest close since Feb. 26 led by large caps.
Ceylon Tobacco Co Plc shares rose 1.83 percent to 1,120 rupees with just one share changing hands, while Ceylinco Insurance Plc rose 7.40 percent to 1449.90 rupees with just nine shares traded, Thomson Reuters data showed.
Foreign investors were sellers for the second straight session, with net selling of 4.89 million rupees worth of shares on Monday. But they have been net buyers of 220 million rupees worth of shares in the last nine sessions.
Net outflows so far in 2014 stand at 3.82 billion rupees. They were 22.88 billion rupees in 2013.
Earlier this month, Sri Lanka questioned the independence of the human rights office of the United Nations after the United States asked it to investigate violations by the Sri Lanka government related to the civil war. A vote on the resolution is scheduled for the last week of the session, starting on March 24.
($1 = 130.6050 Sri Lanka Rupees)
(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Prateek Chatterjee)
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