Dec 9 (Reuters) - Sri Lankan stocks edged down on Tuesday in sluggish trade, with large-caps such as Ceylon Tobacco Co Plc leading the falls as investors remained cautious ahead of the presidential poll next month.
The main stock index fell 0.32 percent, or 23.53 points, to close at 7,217.94.
Foreign investors turned net sellers for the first time in five weeks on Tuesday, offloading shares worth a net 106.8 million rupees, But they have net bought 21.81 billion rupees worth of stock this year, exchange data showed.
Turnover was 790.7 million rupees ($6 million) on Tuesday, according to the data, a little more than half of this year's daily average of 1.43 billion rupees.
"The market is volatile. With the recent crossovers, investors are waiting for direction," said Reshan Kurukulasuriya, chief operating officer of Richard Pieris Securities (Pvt) Ltd.
"What we see is a small hiccup."
Analysts said many investors were staying away ahead of the elections and the festive season.
Ceylon Tobacco ended 3.27 percent lower, while Shalimar Estate fell 15.15 percent.
Analysts expect volatility to continue and the overall index to be flat until the elections on Jan. 8, with speculation over more defections and likely violence ahead of the polls also weighing on sentiment.
Nine loyalists from President Mahinda Rajapaksa's United People's Freedom Alliance, including former health minister Mithripala Sirisena, have defected since Rajapaksa announced snap elections last week. Sirisena resigned to contest against Rajapaksa as the consensus candidate of a united opposition.
Speculation over more defections also weighed on sentiment, analysts said.
Nineteen candidates, including Rajapaksa and Sirisena, have submitted their nominations for the polls.
The main stock index fell 0.32 percent, or 23.53 points, to close at 7,217.94.
Foreign investors turned net sellers for the first time in five weeks on Tuesday, offloading shares worth a net 106.8 million rupees, But they have net bought 21.81 billion rupees worth of stock this year, exchange data showed.
Turnover was 790.7 million rupees ($6 million) on Tuesday, according to the data, a little more than half of this year's daily average of 1.43 billion rupees.
"The market is volatile. With the recent crossovers, investors are waiting for direction," said Reshan Kurukulasuriya, chief operating officer of Richard Pieris Securities (Pvt) Ltd.
"What we see is a small hiccup."
Analysts said many investors were staying away ahead of the elections and the festive season.
Ceylon Tobacco ended 3.27 percent lower, while Shalimar Estate fell 15.15 percent.
Analysts expect volatility to continue and the overall index to be flat until the elections on Jan. 8, with speculation over more defections and likely violence ahead of the polls also weighing on sentiment.
Nine loyalists from President Mahinda Rajapaksa's United People's Freedom Alliance, including former health minister Mithripala Sirisena, have defected since Rajapaksa announced snap elections last week. Sirisena resigned to contest against Rajapaksa as the consensus candidate of a united opposition.
Speculation over more defections also weighed on sentiment, analysts said.
Nineteen candidates, including Rajapaksa and Sirisena, have submitted their nominations for the polls.
($1 = 130.9500 Sri Lankan rupees)
(Reporting by Ranga Sirilal; Editing by Prateek Chatterjee)
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