Poll, econ woes drag S.Lanka shares to near 2-mo low
By Shihar Aneez
COLOMBO, Nov 5 (Reuters) - Sri Lanka's stock index .CSE fell 1.65 percent to its lowest close in nearly 2 months on Thursday, as economic woes and trade union protests ahead of national polls rattled investor confidence. The All-Share Price Index of the Colombo Stock Exchange fell 47.88 points to 2854.82, its fifth straight fall and lowest close since Sept. 15. It has lost 5 percent in the past five sessions.
"Investors are playing cautious amid low foreign inflows ahead of elections," Hussain Gani, associate director at Asia Securities, told Reuters.
The bourse has fallen 8.83 percent after the government said on Oct. 13 it will hold national polls by April.
Frequent protests and trade union actions have dampened investor confidence, which had been already on the decline on worries of political uncertainty ahead of national polls.
Investors are also wary of a likely loss of an EU trade concession.
The EU, which has given a trade concession that helped to boost Sri Lanka's top export, garments, is considering to withdraw the concession over a right abuse probe. See [ID:nLJ731429]
Worries of lower-than-expected corporate earnings and the arrest of one of Sri Lanka's main investors in a U.S. insider trading case in mid October, also have hampered market rise.
For more political risks, click [ID:nSP478539] Continued...
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