Dec 29 (Reuters) - Sri Lankan stocks fell in thin trade on Monday from a five-week closing high in the previous session, as many investors were away for year-end holidays, while fresh defections ahead of the Jan. 8 presidential poll hurt sentiment, stockbrokers said.
The main stock index fell 0.29 percent, or 21.44 points, to 7,287.59. It had marked its highest close since Nov. 21 in the previous session.
Turnover fell to a seven-month low of 349.7 million rupees ($2.67 million), less than a quarter of this year's daily average of 1.42 billion rupees, stock exchange data showed.
Net foreign inflows into stocks were 50.4 million rupees, extending net inflows to 21.88 billion rupees so far this year, exchange data showed.
"Demand was very weak due to the holiday season. Foreign investors are also on holidays, so we don't see large volume share trading," said a stockbroker.
"The tight election between the two main candidates is also hurting sentiment. Some foreign investors are asking which listed companies could be hit if the opposition candidate wins next month's election."
Eight legislators from the main Muslim party defected from President Mahinda Rajapaksa's ruling United People's Freedom Alliance on Sunday.
Since Rajapaksa announced snap elections last month, 23 legislators, including former health minister Mithripala Sirisena, who is challenging Rajapaksa's bid for a third term, have defected. Two opposition legislators have joined the ruling party.
Political analysts see a tight race between Rajapaksa and Sirisena, whose New Democratic Front has promised to eliminate rampant corruption and reduce prices of essential goods and fuel by cutting taxes. Rajapaksa has promised good governance and media freedom if he wins.,
Top fixed-line phone operator Sri Lanka Telecom fell 3.7 percent to 49.50 rupees, while Commercial Leasing and Financial Plc lost 6.38 percent to 4.40 rupees.
($1 = 131.1000 Sri Lankan rupees)
The main stock index fell 0.29 percent, or 21.44 points, to 7,287.59. It had marked its highest close since Nov. 21 in the previous session.
Turnover fell to a seven-month low of 349.7 million rupees ($2.67 million), less than a quarter of this year's daily average of 1.42 billion rupees, stock exchange data showed.
Net foreign inflows into stocks were 50.4 million rupees, extending net inflows to 21.88 billion rupees so far this year, exchange data showed.
"Demand was very weak due to the holiday season. Foreign investors are also on holidays, so we don't see large volume share trading," said a stockbroker.
"The tight election between the two main candidates is also hurting sentiment. Some foreign investors are asking which listed companies could be hit if the opposition candidate wins next month's election."
Eight legislators from the main Muslim party defected from President Mahinda Rajapaksa's ruling United People's Freedom Alliance on Sunday.
Since Rajapaksa announced snap elections last month, 23 legislators, including former health minister Mithripala Sirisena, who is challenging Rajapaksa's bid for a third term, have defected. Two opposition legislators have joined the ruling party.
Political analysts see a tight race between Rajapaksa and Sirisena, whose New Democratic Front has promised to eliminate rampant corruption and reduce prices of essential goods and fuel by cutting taxes. Rajapaksa has promised good governance and media freedom if he wins.,
Top fixed-line phone operator Sri Lanka Telecom fell 3.7 percent to 49.50 rupees, while Commercial Leasing and Financial Plc lost 6.38 percent to 4.40 rupees.
($1 = 131.1000 Sri Lankan rupees)
(Reporting by Shihar Aneez; Editing by Subhranshu Sahu)
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