Reuters: Sri Lankan share index fell for a seventh straight session on Tuesday due to panic selling, led by margin calls after the market fell over 3.5% in the past six sessions, brokers said.
Fears over investors shifting to risk-free assets such as government securities due to rising yields in government securities also dented sentiment.
The main stock index ended 1.74% or 115.97 points down at 6,534.35, the lowest close since 7 July, 2014. The index fell as much as 1.85%, posting its biggest fall since 24 August 2015.
“Market came down due to margin calls and panic selling,” said Dimantha Mathew, research manager at First Capital Equities (Pvt) Ltd.
The bourse dipped further into an oversold territory on Tuesday with the 14-day relative strength index at 17.311 points versus Monday’s 22.844, Reuters data showed.
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