Sri Lankan shares fall for third day

Sri Lankan stocks fell for a third straight session on Wednesday to a one-week closing low amid foreign outflow as investors worried over volatile global markets and rising returns on risk-free assets. The main stock index ended 0.1 percent, or 6.41 points, lower at 6,316.46, the lowest close since January 20. "Even though market is still on a falling trend, there could be bounce back with the start of the earnings season and after the recent sharp fall," said Dimantha Mathew, research manager at First Capital Equities (Pvt) Ltd.
The index has fallen 8.4 percent so far this year as foreign investors, unnerved by global concerns over China's economy, have cut their exposure. Foreign investors sold a net 414.2 million rupees ($2.89 million) worth of shares on Wednesday, extending the year-to-date net foreign outflow to 2.69 billion rupees worth of equities. The day's turnover was at 613.9 million rupees, less than this year's daily average of 781.2 million rupees.