May 21 Sri Lankan shares edged down on Thursday, erasing early gains to slip from their highest close in nearly 12 weeks hit in the previous session, led by some illiquid large-caps such as Nestle Lanka Plc and Carson Cumberbatch Plc.
The main stock index fell 0.22 percent, or 16.08 points, to close at 7,273.69, slipping from its highest close since Feb. 27 hit on Wednesday.
Turnover was 1.68 billion rupees ($12.6 million), well above this year's daily average of about 1.14 billion rupees.
"The bourse dipped at the end of trading mainly due to losses in illiquid large-cap shares. Local participation outweighed foreign activity yet again with institutional and high networth investors buying into banking shares," said a stockbroker asking not to be named.
"Banking, financing and insurance sectors managed to record the highest turnover for the day," the source added.
Foreign investors were net sellers on Thursday for a second straight session, offloading 64.4 million rupees worth of shares on Thursday. But they have been net buyers of 5.94 million rupees worth of stocks so far this year.
A surge of 11.2 percent in Lanka ORIX Leasing Co Plc and Lion Brewery (Ceylon) Plc 's 15 percent rise was undercut by losses in Nestle Lanka Plc, which fell 1.79 percent, while Carson Cumberbatch Plc declined 13.5 percent.
The bourse hit its highest level in 12 weeks on Wednesday, led by financials on expectations of better quarterly earnings.
Political uncertainty due to Prime Minister Ranil Wickremesinghe-led UNP not having a parliament majority has been a drag on the market, though the trend reversed after the central bank cut key monetary policy rates to record lows on April 15.
The index has gained 5.6 percent since the rate cut through Wednesday.
The main stock index fell 0.22 percent, or 16.08 points, to close at 7,273.69, slipping from its highest close since Feb. 27 hit on Wednesday.
Turnover was 1.68 billion rupees ($12.6 million), well above this year's daily average of about 1.14 billion rupees.
"The bourse dipped at the end of trading mainly due to losses in illiquid large-cap shares. Local participation outweighed foreign activity yet again with institutional and high networth investors buying into banking shares," said a stockbroker asking not to be named.
"Banking, financing and insurance sectors managed to record the highest turnover for the day," the source added.
Foreign investors were net sellers on Thursday for a second straight session, offloading 64.4 million rupees worth of shares on Thursday. But they have been net buyers of 5.94 million rupees worth of stocks so far this year.
A surge of 11.2 percent in Lanka ORIX Leasing Co Plc and Lion Brewery (Ceylon) Plc 's 15 percent rise was undercut by losses in Nestle Lanka Plc, which fell 1.79 percent, while Carson Cumberbatch Plc declined 13.5 percent.
The bourse hit its highest level in 12 weeks on Wednesday, led by financials on expectations of better quarterly earnings.
Political uncertainty due to Prime Minister Ranil Wickremesinghe-led UNP not having a parliament majority has been a drag on the market, though the trend reversed after the central bank cut key monetary policy rates to record lows on April 15.
The index has gained 5.6 percent since the rate cut through Wednesday.
($1 = 133.6000 Sri Lankan rupees)
(Reporting by Ranga Sirilal; Editing by Prateek Chatterjee)
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