Sri Lankan stocks fell to more than one-week low on Friday, led by a decline in banking shares amid foreign outflows and selling pressure on large-caps, which gained in the recent rally. The main stock index ended lower 0.88 percent, or 65.08 points, at 7,321.00, its lowest since October 1. It hit a near 3-1/2 year closing high on Friday.
Foreign selling was 506 million rupees on Friday, but foreign investors have been net buyers of 9.17 billion rupees so far this year, exchange data showed. "The lack of foreign buying is the main reason for the market decline. There was sharp selling pressure on big cap shares as well," said Dimantha Mathew, manager, research at First Capital Equities (Pvt) Ltd.
Analysts said investors are awaiting the September-quarter earnings and the 2015 budget scheduled on October 24 for further direction. DFCC Bank Plc, which led the overall loss, fell 2.63 percent, while Commercial Bank of Ceylon Plc lost 1 percent. The day's turnover was 2.81 billion rupees ($21.6 million), well above this year's daily average of 1.36 billion rupees.