Nov 10 (Reuters) - Sri Lankan stocks edged down on Monday from a near three-and-half-year high hit in the previous session on profit-taking, led by banks and telecommunication shares.
Continued foreign buying, low interest rates and better earnings expectations kept investor appetite for risky assets intact.
Sri Lanka's main stock index closed 0.17 percent weaker at 7,403.38, moving away from its highest closing level since May 31, 2011 hit on Friday.
"Overall, little bit of profit-taking and slight correction were seen as the market went up fast," said Reshan Kurukulasuriya, COO of Richard Pieris Securities (Pvt) Ltd.
Shares in DFCC Bank Plc, which led the overall fall, lost 1.75 percent to 225 rupees.
Shares in top mobile phone operator Dialog Axiata Plc , which reported a 15.6 percent jump in third quarter net profit on Wednesday, fell 0.8 percent to 12.40 rupees.
Foreign investors bought a net 309.9 million rupees ($2.37 million) worth of shares, extending the net foreign inflow so far this year to 15.88 billion rupees, exchange data showed.
Monday's turnover was 1.88 billion rupees, more than this year's daily average of 1.40 billion rupees.
Analysts expect trading to be choppy in the near-term due to the revised presidential poll schedule in January and a possible bottoming out of interest rates.
The country's central bank has kept key policy rates steady for a ninth straight month, saying private sector credit growth was picking up and long-term lending rates were adjusting downwards.
Continued foreign buying, low interest rates and better earnings expectations kept investor appetite for risky assets intact.
Sri Lanka's main stock index closed 0.17 percent weaker at 7,403.38, moving away from its highest closing level since May 31, 2011 hit on Friday.
"Overall, little bit of profit-taking and slight correction were seen as the market went up fast," said Reshan Kurukulasuriya, COO of Richard Pieris Securities (Pvt) Ltd.
Shares in DFCC Bank Plc, which led the overall fall, lost 1.75 percent to 225 rupees.
Shares in top mobile phone operator Dialog Axiata Plc , which reported a 15.6 percent jump in third quarter net profit on Wednesday, fell 0.8 percent to 12.40 rupees.
Foreign investors bought a net 309.9 million rupees ($2.37 million) worth of shares, extending the net foreign inflow so far this year to 15.88 billion rupees, exchange data showed.
Monday's turnover was 1.88 billion rupees, more than this year's daily average of 1.40 billion rupees.
Analysts expect trading to be choppy in the near-term due to the revised presidential poll schedule in January and a possible bottoming out of interest rates.
The country's central bank has kept key policy rates steady for a ninth straight month, saying private sector credit growth was picking up and long-term lending rates were adjusting downwards.
($1 = 130.9000 Sri Lankan rupees)
(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Sunil Nair)
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