Dec 2 (Reuters) - Sri Lankan stocks ended weaker on Tuesday as retail investors booked profits as political uncertainty weighed ahead of the Jan.8 snap presidential polls in which President Mahinda Rajapaksa is seeking re-election for a third term.
The main stock index ended 0.62 percent or 45.10 points lower at 7,230.58, hovering near its lowest since Sept. 5, hit on Thursday.
"Clients are booking profits and trying to buy at lower levels as they were expecting a correction after the market topped the 7,000-level," said a stockbroker on condition of anonymity.
Nine loyalists from Rajapaksa's United People's Freedom Alliance, including Health Minister Mithripala Sirisena, have defected since the president announced the snap poll on Nov. 20. Sirisena is contesting against Rajapaksa as the consensus candidate of a united opposition.
Speculation that more loyalists would defect in the coming days and likely violence ahead of polling also weighed on sentiment, analysts said.
Turnover stood at 1 billion rupees ($7.63 million) on Tuesday, exchange data showed, less than this year's daily average of 1.44 billion rupees. Foreign investors bought a net 361.6 million rupees worth stocks, extending purchases during the year to 20.89 billion rupees, exchange data showed.
Shares in Nestle Lanka Plc fell 2.31 percent, leading the fall, while Good Hope Plc fell 18.51 percent.
The main stock index ended 0.62 percent or 45.10 points lower at 7,230.58, hovering near its lowest since Sept. 5, hit on Thursday.
"Clients are booking profits and trying to buy at lower levels as they were expecting a correction after the market topped the 7,000-level," said a stockbroker on condition of anonymity.
Nine loyalists from Rajapaksa's United People's Freedom Alliance, including Health Minister Mithripala Sirisena, have defected since the president announced the snap poll on Nov. 20. Sirisena is contesting against Rajapaksa as the consensus candidate of a united opposition.
Speculation that more loyalists would defect in the coming days and likely violence ahead of polling also weighed on sentiment, analysts said.
Turnover stood at 1 billion rupees ($7.63 million) on Tuesday, exchange data showed, less than this year's daily average of 1.44 billion rupees. Foreign investors bought a net 361.6 million rupees worth stocks, extending purchases during the year to 20.89 billion rupees, exchange data showed.
Shares in Nestle Lanka Plc fell 2.31 percent, leading the fall, while Good Hope Plc fell 18.51 percent.
(1 US dollar = 131.1000 Sri Lankan rupee)
(Reporting by Ranga Sirilal; Editing by Biju Dwarakanath)
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