(Reuters) - Sri Lankan stocks slipped on Monday for a fourth straight session to hit a more than one-week closing low led by financials, while foreign investors offloaded shares of market heavyweight John Keells Holdings.
Analysts said the market will move sideways in the short-term with lower risk, due to lower interest rates.
The main stock index lost 0.05 percent, or 3.10 points, to close at 6,299.35, its lowest since June 11. It hit a more than one-year high on Tuesday.
There was a layer of selling due to the recent ethnic violence and possible implications after a government spokesman said Sri Lanka bought Iran crude via third parties, said a stockbroker on condition of anonymity.
"We have seen foreign selling of Keells in the last few days. That is not a good sign for the overall market sentiment," the broker said.
Bourse data showed foreign investors have been selling Keells for six straight sessions.
Stockbrokers said investors perceive the violence in the previous weekend that killed at least three people and left over 75 people seriously injured could hit the market and the tourism sector.
Sri Lanka's government spokesman said on Thursday the island nation has been buying Iranian crude from various countries via third parties, and avoiding Western sanctions with the understanding of the United States. The United States denied the claim.
The bourse saw net foreign outflows for the second straight session. Foreign investors net sold 180.1 million rupees ($1.38 million) of stocks, but they have been net buyers of 5.5 billion rupees so far this year.
Turnover was 867.3 million rupees, less than this year's daily average of 1 billion rupees.
National Development Bank PLC fell 2.01 percent to 195 rupees, while John Keells Holdings Plc, which accounted for 21.5 percent of the days turnover, fell 0.32 percent to 220 rupees.
The market has been on a rising trend since late February due to continued foreign buying and lower interest rates. It fell on Wednesday after the central bank held the key policy rates steady, though some had expected a rate cut.
Analysts said the market will move sideways in the short-term with lower risk, due to lower interest rates.
The main stock index lost 0.05 percent, or 3.10 points, to close at 6,299.35, its lowest since June 11. It hit a more than one-year high on Tuesday.
There was a layer of selling due to the recent ethnic violence and possible implications after a government spokesman said Sri Lanka bought Iran crude via third parties, said a stockbroker on condition of anonymity.
"We have seen foreign selling of Keells in the last few days. That is not a good sign for the overall market sentiment," the broker said.
Bourse data showed foreign investors have been selling Keells for six straight sessions.
Stockbrokers said investors perceive the violence in the previous weekend that killed at least three people and left over 75 people seriously injured could hit the market and the tourism sector.
Sri Lanka's government spokesman said on Thursday the island nation has been buying Iranian crude from various countries via third parties, and avoiding Western sanctions with the understanding of the United States. The United States denied the claim.
The bourse saw net foreign outflows for the second straight session. Foreign investors net sold 180.1 million rupees ($1.38 million) of stocks, but they have been net buyers of 5.5 billion rupees so far this year.
Turnover was 867.3 million rupees, less than this year's daily average of 1 billion rupees.
National Development Bank PLC fell 2.01 percent to 195 rupees, while John Keells Holdings Plc, which accounted for 21.5 percent of the days turnover, fell 0.32 percent to 220 rupees.
The market has been on a rising trend since late February due to continued foreign buying and lower interest rates. It fell on Wednesday after the central bank held the key policy rates steady, though some had expected a rate cut.
($1 = 130.2000 Sri Lankan Rupees)
(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Prateek Chatterjee)
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