Bourse falls to over-12-week low

Reuters: Shares fell to their lowest in more than 12 weeks on Tuesday led by market heavyweight John Keells Holdings Plc as political uncertainty dented investor sentiment ahead of Parliamentary elections.

The main stock index ended 0.31% weaker at 6,967.78, its lowest close since 10 April.

The day’s turnover was Rs. 713.5 million ($5.34 million), less than this year’s daily average of Rs. 1.07 billion.

Shares in John Keells Holdings fell 1.1% while Hatton National Bank Plc fell 2.16%, dragging the overall index.

President Maithripala Sirisena dissolved Parliament on 26 June and scheduled elections for 17 August, in an effort to consolidate power and push through political reforms.

However, political analysts do not as yet see a clear winner in the elections.

The market saw a net foreign outflow of Rs. 161.7 million on Tuesday, extending the net outflow for the past 29 sessions to Rs. 4.8 billion.

However, foreign investors are net buyers of Rs. 1.09 billion worth of shares so far this year.