Reuters: Sri Lankan shares edged down on Tuesday led by losses in diversified shares as investors turned cautious amid a weakening rupee and high interest rates.
The main stock index ended down 0.14 percent at 7,152.43.
Turnover stood at 613.5 million rupees ($4.39 million), well below this year's daily average of 1.13 billion rupees. The turnover has been about half of this year's daily average since Aug. 31, the bourse data showed.
"Investors are waiting to see how the government is going to bridge the budget deficit and where the revenue is going to come. That is the single biggest thing they are waiting to see," said Dimantha Mathew, a research manager at First Capital Equities (Pvt) Ltd.
A weak rupee curbed investor risk appetite and rising market interest rates also hit sentiment, with T-bill yields at their highest in more than five months at the last auction.
The rupee fell 0.3 percent on Tuesday, hitting a record low for a third session in a row due to importer dollar demand.
Foreign investors were sellers of 11.8 million rupees worth shares on Tuesday extending the year-to-date net foreign selling to 3.02 billion rupees worth of equities.
Shares in Carson Cumberbatch Plc fell 1.25 percent while Dialog Axiata Plc fell 0.88 percent.
The main stock index ended down 0.14 percent at 7,152.43.
Turnover stood at 613.5 million rupees ($4.39 million), well below this year's daily average of 1.13 billion rupees. The turnover has been about half of this year's daily average since Aug. 31, the bourse data showed.
"Investors are waiting to see how the government is going to bridge the budget deficit and where the revenue is going to come. That is the single biggest thing they are waiting to see," said Dimantha Mathew, a research manager at First Capital Equities (Pvt) Ltd.
A weak rupee curbed investor risk appetite and rising market interest rates also hit sentiment, with T-bill yields at their highest in more than five months at the last auction.
The rupee fell 0.3 percent on Tuesday, hitting a record low for a third session in a row due to importer dollar demand.
Foreign investors were sellers of 11.8 million rupees worth shares on Tuesday extending the year-to-date net foreign selling to 3.02 billion rupees worth of equities.
Shares in Carson Cumberbatch Plc fell 1.25 percent while Dialog Axiata Plc fell 0.88 percent.
($1 = 139.8000 Sri Lankan rupees)
(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Sunil Nair)
