Dec 10 (Reuters) - Sri Lankan stocks rose to a one-week high on Wednesday, led by blue-chips such as John Keells Holdings Plc, though investors remained cautious ahead of the presidential poll next month.
The main stock index rose 0.5 percent, or 36.34 points, to close at 7,254.28, its highest close since Dec. 3.
Foreign investors were net sellers for the second straight session on Wednesday, offloading shares worth a net 166.7 million rupees ($1.3 million). But they have net bought 21.65 billion rupees worth of stock this year, exchange data showed.
Turnover was 1.06 billion rupees on Wednesday, according to the data, lese than this year's daily average of 1.43 billion rupees.
"Market is up on blue-chips and is positive but most of the investors are a little cautious and awaiting to see the direction with the elections," said Reshan Kurukulasuriya, chief operating officer of Richard Pieris Securities (Pvt) Ltd.
Analysts said many investors were staying away ahead of the elections and the festive season.
Conglomerate John Keells Holdings Plc rose 1.52 percent, while Hemas Holdings Plc gained 5.63 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.
Eleven 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 month. Sirisena resigned to contest against Rajapaksa as the consensus candidate of a united opposition.
Nineteen candidates, including Rajapaksa and Sirisena, have submitted their nominations for the polls.
The main stock index rose 0.5 percent, or 36.34 points, to close at 7,254.28, its highest close since Dec. 3.
Foreign investors were net sellers for the second straight session on Wednesday, offloading shares worth a net 166.7 million rupees ($1.3 million). But they have net bought 21.65 billion rupees worth of stock this year, exchange data showed.
Turnover was 1.06 billion rupees on Wednesday, according to the data, lese than this year's daily average of 1.43 billion rupees.
"Market is up on blue-chips and is positive but most of the investors are a little cautious and awaiting to see the direction with the elections," said Reshan Kurukulasuriya, chief operating officer of Richard Pieris Securities (Pvt) Ltd.
Analysts said many investors were staying away ahead of the elections and the festive season.
Conglomerate John Keells Holdings Plc rose 1.52 percent, while Hemas Holdings Plc gained 5.63 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.
Eleven 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 month. Sirisena resigned to contest against Rajapaksa as the consensus candidate of a united opposition.
Nineteen candidates, including Rajapaksa and Sirisena, have submitted their nominations for the polls.
($1 = 131.0500 Sri Lankan rupees)
(Reporting by Ranga Sirilal; Editing by Prateek Chatterjee)
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