Sri Lanka stock trading halted after sharp fall

Thu, 20 June 2013 19:10:38

13 Oct, 2010 10:37:39

Oct 13, 2010 (LBO) - Trading in Sri Lanka's stocks were halted for 30 minutes after an index of liquid stocks fell more than 5.0 percent as an intensified sell off continued for a second day, driving stock prices down.

The benchmark Colombo All Share Index was down 4.52 percent to 6,238 point in mid morning trade and the Milanka Index was down 5.09 percent to 6,757 according to Colombo Stock Exchange provisional figures.

Stocks fell 4.4 percent yesterday after becoming the best performing stock exchange in the world.

Even after yesterday's fall Sri Lanka stocks were up over 90 percent.

Stocks continued to fall after trading resumed, but recovered some losses later with institutional buying returning, brokers said.

Sri Lankan stocks are trading high multiples compared to the region and a correction has been expected to prevent the build up of a bigger bubble, according to analysts.

Even after yesterday fall,the market price to earnings multiple on historical earnings was over 25 times.

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READER COMMENT(S)

4. stock market wizard Oct 13

This is not a fall wait for the real fall.CSE cannot hold all the falls. some one is losing more trying to prop up. Institutions buying- only ones are probably government owned

3. Siripala Oct 13

Watch out!!!, this bull is heading for the slaughter house. Share prices are fragile at these all time high levels.

2. Investor Oct 13

Investors - as opposed to traders - should not be unduly concerned about the daily, weekly or even monthly fluctuations in the overall stock market.

Markets do not go up - or down - in straight lines. There will inevitably be periods of consolidation, but the long-term trend is what matters for investors.

Investors should only be concerned with daily fluctuations in prices to the extent that someone does something silly and offers attractive prices!

1. Danushka Oct 13

Real Bulls are awaken after a long nap.....are there bull in you....SEC be practical remove your glasses and see the real world..