Sri Lankan stocks fell to a 3 month low due to investors' fears that the presidential elections in January could result in a hung parliament, reports Reuters.
"The crossovers have raised concern over the political stability of the government and some believe it could result in a hung parliament, resulting in political instability. At the moment, it is not clear who will win. But if we see a massive defection in parliament towards one side, then it will be clear who is going to win and that will help the market rebound." a stockbroker said on condition of anonymity.
Shares in Sri Lanka's biggest lender, Commercial Bank of Ceylon, fell by 4.40%, the greatest of all the losers.
"The crossovers have raised concern over the political stability of the government and some believe it could result in a hung parliament, resulting in political instability. At the moment, it is not clear who will win. But if we see a massive defection in parliament towards one side, then it will be clear who is going to win and that will help the market rebound." a stockbroker said on condition of anonymity.
Shares in Sri Lanka's biggest lender, Commercial Bank of Ceylon, fell by 4.40%, the greatest of all the losers.