Dec 22 (Reuters) - Sri Lankan stocks ended little changed on Monday amid moderate trading, but stockbrokers expect volatility until the Jan. 8 presidential poll with fresh defections from the ruling party raising political uncertainty.
The main stock index ended 0.01 percent weaker at 7,251.57.
After market hours on Monday, two ruling party legislators, including a cabinet minister, defected President Mahinda Rajapaksa's United People's Freedom Alliance to join the opposition camp for the upcoming presidential poll.
With the latest defection, Rajapaksa has lost his two-third majority for the first time in more than four years.
Thirteen legislators, including former health minister Mithripala Sirisena, who is challenging Rajapaksa's bid for a third term as the consensus candidate of a united opposition, have defected after the president announced snap elections last month. Two opposition legislators have defected to the ruling party.
"With the new defections there could be volatility," a stockbroker said on condition of anonymity.
"A majority of market players, including the stockbroker community, had expected Rajapaksa to win the election convincingly. But with more defections the chances of his re-election look difficult."
Speculation over more defections also weighed on sentiment, analysts said.
The day's turnover stood at 867.8 million rupees ($6.62 million), stock exchange data showed, lower than this year's daily average of 1.41 billion rupees.
The bourse saw a net foreign outflow of 179.6 million rupees this session, but it has seen a net inflow of 21.5 billion rupee worth stocks so far this year, exchange data showed.
Gains led by financials were offset by losses mainly in conglomerates.
DFCC Bank gained 3.03 percent to 224 rupees, while construction firm Access Engineering fell 1.9 percent to 36.10 rupees.
($1 = 131.1000 Sri Lankan rupees)
The main stock index ended 0.01 percent weaker at 7,251.57.
After market hours on Monday, two ruling party legislators, including a cabinet minister, defected President Mahinda Rajapaksa's United People's Freedom Alliance to join the opposition camp for the upcoming presidential poll.
With the latest defection, Rajapaksa has lost his two-third majority for the first time in more than four years.
Thirteen legislators, including former health minister Mithripala Sirisena, who is challenging Rajapaksa's bid for a third term as the consensus candidate of a united opposition, have defected after the president announced snap elections last month. Two opposition legislators have defected to the ruling party.
"With the new defections there could be volatility," a stockbroker said on condition of anonymity.
"A majority of market players, including the stockbroker community, had expected Rajapaksa to win the election convincingly. But with more defections the chances of his re-election look difficult."
Speculation over more defections also weighed on sentiment, analysts said.
The day's turnover stood at 867.8 million rupees ($6.62 million), stock exchange data showed, lower than this year's daily average of 1.41 billion rupees.
The bourse saw a net foreign outflow of 179.6 million rupees this session, but it has seen a net inflow of 21.5 billion rupee worth stocks so far this year, exchange data showed.
Gains led by financials were offset by losses mainly in conglomerates.
DFCC Bank gained 3.03 percent to 224 rupees, while construction firm Access Engineering fell 1.9 percent to 36.10 rupees.
($1 = 131.1000 Sri Lankan rupees)
(Reporting by Shihar Aneez; Editing by Subhranshu Sahu)
No comments:
Post a Comment