Monday 7 April 2014

Sri Lanka stocks slip from near seven-week high

(Reuters) - The Sri Lankan index slipped on Monday from a near seven-week high hit in the previous session, despite foreign investors buying risky assets.

The main stock index ended 0.1 percent, or 6.17 points weaker at 6,048.38, declining from its highest since Feb. 17 hit in the previous session.

The day's turnover was 537.5 million rupees ($4.1 million) turnover, well below this year's daily average of 1 billion rupees.

The bourse saw net foreign inflows of 211.1 million rupees, though foreigners have net sold 9.39 billion rupees worth of shares so far this year.

Lanka Orix Leasing Co Plc shares fell 3.72 percent to end at 75.10 rupees, while Cargills (Ceylon) Plc fell 3.66 percent to close at 136.80.

Investor sentiment is yet to recover after the United Nations announced it would probe alleged war crimes by the island nation, analysts said.

The bourse has suffered 5.26 billion rupees in foreign outflows in the seven sessions since March 28 due to the exit of a large foreign fund.

The United Nations has launched an inquiry into war crimes allegedly committed by both Sri Lankan state forces and Tamil rebels during a conflict that ended in 2009, saying the government had failed to investigate properly.

Analysts said the outcome of the resolution was expected, but investors' sentiment has been dented over concerns it could hurt the country's economy.

Several potential buyers of risky assets are waiting for a clear direction.

($1 = 130.6000 Sri Lanka rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Prateek Chatterjee)

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