April 20, 2012 (LBO) – Sri Lankan shares slumped Friday after a short-lived rally the day before in a knee-jerk reaction to the lifting of price restrictions by regulators, brokers said. The main All Share Price Index fell 0.64 percent (35.11 points) to 5,483.61, while the more liquid Milanka index fell 0.30 percent (14.81) to close at 4,924.99.
Turnover improved to 622 million rupees, according to stock exchange provisional figures.
The market lost steam in the afternoon after a morning rally that followed a two percent gain Thursday, when the regulator said it had removed ‘price bands’ imposed to curb stock price volatility caused by speculation.
Index heavyweight John Keells Holdings closed at 206 rupes, down 50 cents.
Ceylon Tea Brokers, which had been the top gainer Thursday, fell 30 cents to close at 5.40 rupees with over 1.2 million shares traded.
Environmental Resources Investments was also actively traded, closing at 16.50 rupees, down 10 cents, as was HVA Foods which ended at 13.60 rupees, down 40 cents.