(Reuters) - Sri Lankan stocks fell for the second straight session on Thursday as investors booked profits, but stockbrokers expect the market to continue its gaining streak due to persistent foreign buying, lower interest rates, and positive economic outlook.
The main stock index ended down 0.3 percent, or 21.45 points, at 7,232.98, further slipping from its over three-year high close hit on Tuesday. It has gained in six of the last eight sessions till Thursday.
"Market is down on correction as it has been going up for the last few months. A correction is warranted," said Reshan Kurukulasuriya, COO of Richard Pieris Securities.
"Market will start moving up with all the positive factors," he said referring to lower interest rates, positive economic outlook, and continued foreign buying.
Shares of Sri Lanka Telecom Plc, which led the overall fall, ended 2.44 percent weaker at 51.9 rupees, while Heyleys Plc lost 3.53 percent at 352.10 rupees.
Shares in biggest listed lender Commercial Bank of Ceylon Plc fell 1.07 percent to 157.20 rupees.
The day's turnover was 1.19 billion rupees ($9.13 million), less than this year's daily average of over 1.28 billion rupees.
Foreign investors were net buyers of 125.3 million rupees worth of shares on Thursday, extending the year-to-date net foreign inflows in stocks to 11.36 billion rupees.
The main stock index ended down 0.3 percent, or 21.45 points, at 7,232.98, further slipping from its over three-year high close hit on Tuesday. It has gained in six of the last eight sessions till Thursday.
"Market is down on correction as it has been going up for the last few months. A correction is warranted," said Reshan Kurukulasuriya, COO of Richard Pieris Securities.
"Market will start moving up with all the positive factors," he said referring to lower interest rates, positive economic outlook, and continued foreign buying.
Shares of Sri Lanka Telecom Plc, which led the overall fall, ended 2.44 percent weaker at 51.9 rupees, while Heyleys Plc lost 3.53 percent at 352.10 rupees.
Shares in biggest listed lender Commercial Bank of Ceylon Plc fell 1.07 percent to 157.20 rupees.
The day's turnover was 1.19 billion rupees ($9.13 million), less than this year's daily average of over 1.28 billion rupees.
Foreign investors were net buyers of 125.3 million rupees worth of shares on Thursday, extending the year-to-date net foreign inflows in stocks to 11.36 billion rupees.
($1 = 130.3000 Sri Lankan rupee)
(Reporting by Ranga Sirilal and Shihar Aneez)
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