Dec 4 Sri Lankan shares edged down on Friday, hovering near an eight-month closing low, on worries that the new budget proposals would hit earnings of financial firms.<\/p>\n
Investor sentiment was also dented following Prime Minister Ranil Wickremesinghe’s warning on Wednesday of lower economic growth in 2016 due to the global slowdown.<\/p>\n
The main stock index ended 0.16 percent weaker at 6,869.56. On Wednesday, it closed at its lowest level since March 31 at 6,862.79.<\/p>\n
The index was heading towards oversold territory with the 14-day Relative Strength Index at 30.523 versus Thursday’s 31.662, Reuters data showed. A level between 70-30 indicates the market is neutral.<\/p>\n
“It was another dull day,” said Yohan Samarakkody, head of research at SC Securities (Pvt) Ltd., adding that foreign and retail participation was low.<\/p>\n
“We expect this trend to continue till January,” he said.<\/p>\n
Local institutions and retail investors remained on the sidelines, analysts said.<\/p>\n
Foreign investors were net sellers for the first time in five sessions. They sold a net 13.2 million rupees worth of shares on Friday, extending the year-to-date net foreign outflow to 3.49 billion rupees worth of equities so far this year.<\/p>\n
Turnover was 371.9 million rupees, the lowest since July 21 and well below this year’s daily average of 1.1 billion rupees.<\/p>\n