Sri Lanka stocks inch down on foreign outflows

COLOMBO, March 18 Tue Mar 18, 2014 8:05am EDT

COLOMBO, March 18 (Reuters) - Sri Lankan shares edged down on Tuesday in thin trade, led by a fall in Nestle Lanka Plc and foreign outflows as investors were cautious ahead of a U.N. resolution on the country's human rights record later this month.

The main stock index fell 0.11 percent, or 6.47 points, to 5,907.64.

The day's turnover was at 509 million rupees ($3.90 million), nearly half of this year's daily average of about 912.8 million rupees.

Analysts said investor sentiment has been dented on concerns over the U.N. resolution, which could have an impact on the country's economy. Many potential buyers in risky assets are staying on the sidelines awaiting clear direction.

Foreign investors were sellers for the third straight session, with net selling of 61.2 million rupees worth of shares on Tuesday. Net outflows so far in 2014 stand at 3.88 billion rupees. They were 22.88 billion rupees in 2013.

Shares in Nestle Lanka fell 3.94 percent to 1912.10 rupees.

Earlier this month, Sri Lanka questioned the independence of the human rights office of the United Nations after the United States asked it to investigate violations by the Sri Lanka government related to the civil war.

A vote on the resolution is scheduled for the last week of the session, starting on March 24. ($1 = 130.6000 Sri Lanka Rupees) (Reporting by Ranga Sirilal and Shihar Aneez; Editing by Anand Basu)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.