Sri Lankan shares declined for a second straight session on Tuesday and posted their lowest close in nearly four weeks, as foreign investors sold stocks such as conglomerate John Keells Holdings Plc, brokers said.
The Colombo stock index ended 0.41 percent lower at 6,117.63, its lowest close since July 11, and has declined about 4 percent so far this year. Turnover rose to the highest since May 31, at 2.1 billion rupees ($13.15 million), well above this year's daily average of 849 million rupees.
"Market was dragged down by foreign selling of blue chips. A foreign fund is exiting as part of its selloff," said Atchuthan Srirangan, assistant manager - research, First Capital Holdings Plc. Foreign investors sold equities worth a net 983.4 million rupees, extending the year-to-date net foreign outflow to 3.5 billion rupees worth of equities. Shares of John Keells, which accounted for 50.8 percent of the day's turnover, ended 1.1 percent lower with foreign investors selling 7.5 million shares of the company.