Dec 4 (Reuters) - Sri Lankan stocks ended weaker on Thursday, erasing early gains as investors sold select shares and on caution due to political uncertainty ahead of the Jan. 8 presidential poll, analysts said.
The main stock index fell 0.27 percent, or 19.63 points, to close at 7,254.80.
Nine loyalists from President Mahinda Rajapaksa's United People's Freedom Alliance, including Health Minister Mithripala Sirisena, have defected since he announced a snap poll on Nov. 20. Sirisena is contesting against Rajapaksa as the consensus candidate of a united opposition.
Speculation that more could defect in the coming days and likely violence ahead of polling also weighed on sentiment, analysts said.
"People are in a wait-and-see approach. They may be waiting until nominations are filed next week to see the trend," said Dimantha Mathew, manager - research, First Capital Equities (pvt) Ltd.
Turnover stood at 865.5 million rupees ($6.6 million) on Thursday, exchange data showed, well below this year's daily average of 1.44 billion rupees.
Foreign investors net bought 665.2 million rupees worth of shares on Thursday, extending purchases during the year to 21.56 billion rupees, exchange data showed.
Analysts expect volatility to continue and the overall index to be flat until the elections on Jan. 8.
Carson Cumberbatch Plc led the fall, ended 4.54 percent weaker, while Ceylinco Insurance Plc fell 8.09 percent.
Lanka IOC Plc fell 3.84 percent.
($1 = 131.0000 Sri Lankan rupee)
The main stock index fell 0.27 percent, or 19.63 points, to close at 7,254.80.
Nine loyalists from President Mahinda Rajapaksa's United People's Freedom Alliance, including Health Minister Mithripala Sirisena, have defected since he announced a snap poll on Nov. 20. Sirisena is contesting against Rajapaksa as the consensus candidate of a united opposition.
Speculation that more could defect in the coming days and likely violence ahead of polling also weighed on sentiment, analysts said.
"People are in a wait-and-see approach. They may be waiting until nominations are filed next week to see the trend," said Dimantha Mathew, manager - research, First Capital Equities (pvt) Ltd.
Turnover stood at 865.5 million rupees ($6.6 million) on Thursday, exchange data showed, well below this year's daily average of 1.44 billion rupees.
Foreign investors net bought 665.2 million rupees worth of shares on Thursday, extending purchases during the year to 21.56 billion rupees, exchange data showed.
Analysts expect volatility to continue and the overall index to be flat until the elections on Jan. 8.
Carson Cumberbatch Plc led the fall, ended 4.54 percent weaker, while Ceylinco Insurance Plc fell 8.09 percent.
Lanka IOC Plc fell 3.84 percent.
($1 = 131.0000 Sri Lankan rupee)
(Reporting by Ranga Sirilal; Editing by Prateek Chatterjee)
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