Bloodbath on Sri Lanka’s tiny bourse

Sri Lanka’s tiny stockmarket plunged when trading opened on Friday as investor dumped stocks on news that premier Mahinda Rajapakse had taken an early lead in Thursday’s presidential poll, brokers said. Sri Lanka’s tiny stockmarket plunged when trading opened on Friday as investor dumped stocks on news that premier Mahinda Rajapakse had taken an early lead in Thursday’s presidential poll, brokers said. The benchmark All Share Price index continued Thursday’s free fall, plunging 176 points to 2,324, after jumping five percent on Wednesday, a record high in recent times.

The liquid Milanka Price index, which tracks the most traded 25 stocks, dived 264 points to 3,025, when markets opened trading at 9.30 am local time, according to provisional data obtained by brokers.

During ten minutes of trading, turnover was a slim Rs. 25 million.

“Everybody’s dumping … there are net sellers in the market today following early election results,” said Vajira Premawardhana, Head of Research LOLC Securities.

Heavy selling orders were noted across-the-board, led by bluechip stocks in the telecommunication, banking and diversified sectors, brokers said.

Prime Minister Mahinda Rajapakse was marginal