S. Lanka pre-poll uncertininty pushes stx to over 1-wk low

By Ranga Sirilal and Shihar Aneez

COLOMBO, Nov 20 (Reuters) - Sri Lanka's shares fell on Friday to a more than one-week low at the close, on dipping investor confidence due to a delay in national poll schedule.

The All-Share Price Index .CSE of the Colombo Stock Exchange closed 0.93 percent or 27.43 points weaker at 2933.34, its third straight fallt and lowest since Nov. 12.

"Investors are waiting for direction from the election announcement," said an analyst on condition of anonymity. "Until then, there will be lacklustre trading."

Sri Lankan president on Sunday dodged an expected announcement of dates for early presidential and parliamentary elections due by April without giving a reason. [ID:nCOL305387]

Analysts and traders said investors are concerned over the latest political development with two main opposition parties are in discussions to contest with a common candidate aiming to defeat the incumbent president Mahinda Rajapaksa.

Those political concerns, traders said, prevented investors from borrowing funds at cheaper rates after the central bank cut its key policy rates to multi-year lows to spur faltering economic growth. [ID:nCOL91110]

Investor confidence in the island nation's bourse, still one of this year's best-performers in the world with a 95 percent year-to-date return, has been on the decline after the government on Oct. 13 announced it will hold elections by April. It has fallen over 6.3 percent since then.

For more political risks, click [ID:nSP478539]