Sri Lankan shares edged down on Friday, hovering near an eight-month closing low, on worries that the new budget proposals would hit earnings of financial firms. Investor sentiment was also dented following Prime Minister Ranil Wickremesinghe's warning on Wednesday of lower economic growth in 2016 due to the global slowdown. The main stock index ended 0.16 percent weaker at 6,869.56. On Wednesday, it closed at its lowest level since March 31 at 6,862.79.
The index was heading towards oversold territory with the 14-day Relative Strength Index at 30.523 versus Thursday's 31.662, Reuters data showed. A level between 70-30 indicates the market is neutral. Foreign investors were net sellers for the first time in five sessions. They sold a net 13.2 million rupees worth of shares on Friday, extending the year-to-date net foreign outflow to 3.49 billion rupees worth of equities so far this year.

Copyright Reuters, 2015

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