(Reuters) - Sri Lankan shares fell for the 11th straight session on Monday to a six-week closing low with some buying by foreign investors, but local investors awaited direction with worries over rising interest rates.
The main stock index ended 0.57 percent, or 40.34 points weaker, at 7,050.91, its lowest close since Feb. 5, extending the fall to 3.64 percent in the last 11 sessions.
Foreign investors were net buyers of 204.2 million rupees worth of shares, extending the year-to-date foreign inflow to 2.81 billion rupees.
The day's turnover stood at 582.9 million rupees ($4.39 million), well below this year's daily average of 1.27 billion rupees.
Dealers said the market was closely monitoring interest rates amid heavy government borrowing. Sri Lanka's new government has borrowed more than $1 billion in four days through Thursday, which economists have blamed on poor revenue and higher expenditure.
The heavy borrowing has resulted in a spike in market interest rates.
Yields on t-bills rose between 21 basis points and 38 basis points at a weekly auction on Wednesday with the 91-day t-bill yield rising to a 14-month high of 7.10 percent.
Shares in Ceylinco Insurance Plc fell 11.76 percent while conglomerate John Keells Holdings Plc fell 0.92 percent.
The main stock index ended 0.57 percent, or 40.34 points weaker, at 7,050.91, its lowest close since Feb. 5, extending the fall to 3.64 percent in the last 11 sessions.
Foreign investors were net buyers of 204.2 million rupees worth of shares, extending the year-to-date foreign inflow to 2.81 billion rupees.
The day's turnover stood at 582.9 million rupees ($4.39 million), well below this year's daily average of 1.27 billion rupees.
Dealers said the market was closely monitoring interest rates amid heavy government borrowing. Sri Lanka's new government has borrowed more than $1 billion in four days through Thursday, which economists have blamed on poor revenue and higher expenditure.
The heavy borrowing has resulted in a spike in market interest rates.
Yields on t-bills rose between 21 basis points and 38 basis points at a weekly auction on Wednesday with the 91-day t-bill yield rising to a 14-month high of 7.10 percent.
Shares in Ceylinco Insurance Plc fell 11.76 percent while conglomerate John Keells Holdings Plc fell 0.92 percent.
($1 = 132.9000 Sri Lankan rupees)
(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Sunil Nair)
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