Dec 16 (Reuters) - Sri Lankan stocks fell for a fourth straight session on Tuesday, led by blue-chips such as John Keells Holdings as investors remained cautious ahead of the Jan. 8 presidential poll.
The main stock index ended 0.09 percent, or 6.70 points, lower at 7,223.56, its lowest close since Dec. 9.
"There was limited activity. Political worries are hindering market activity," a stockbroker said on condition of anonymity.
"Investors expect political stability after the election and until such time we may hardly see any big activity unless government funds boost the index."
Turnover stood at 543.7 million rupees ($4.15 million), according to stock exchange data, well below this year's daily average of 1.42 billion rupees.
Analysts and stockbrokers expect trading to be sluggish due to political uncertainty ahead of the presidential polls next month and the index to fall through December-end.
Foreign investors bought a net 57.4 million rupees worth of shares, extending their net buying so far this year to 22 billion rupees, exchange data showed.
Shares in Keells fell 0.79 percent to 250 rupees.
Nineteen candidates, including President Mahinda Rajapaksa and former health minister Mithripala Sirisena, the consensus candidate of a united opposition, submitted their nominations on Monday.
So far 11 loyalists from Rajapaksa's United People's Freedom Alliance, including Sirisena, have defected after he announced snap elections last month, while two opposition legislators have joined the ruling party.
Speculation over more defections also weighed on sentiment, analysts said.
The main stock index ended 0.09 percent, or 6.70 points, lower at 7,223.56, its lowest close since Dec. 9.
"There was limited activity. Political worries are hindering market activity," a stockbroker said on condition of anonymity.
"Investors expect political stability after the election and until such time we may hardly see any big activity unless government funds boost the index."
Turnover stood at 543.7 million rupees ($4.15 million), according to stock exchange data, well below this year's daily average of 1.42 billion rupees.
Analysts and stockbrokers expect trading to be sluggish due to political uncertainty ahead of the presidential polls next month and the index to fall through December-end.
Foreign investors bought a net 57.4 million rupees worth of shares, extending their net buying so far this year to 22 billion rupees, exchange data showed.
Shares in Keells fell 0.79 percent to 250 rupees.
Nineteen candidates, including President Mahinda Rajapaksa and former health minister Mithripala Sirisena, the consensus candidate of a united opposition, submitted their nominations on Monday.
So far 11 loyalists from Rajapaksa's United People's Freedom Alliance, including Sirisena, have defected after he announced snap elections last month, while two opposition legislators have joined the ruling party.
Speculation over more defections also weighed on sentiment, analysts said.
($1 = 131.0000 Sri Lankan rupees)
(Reporting by Shihar Aneez; Editing by Sunil Nair)
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