Sri Lanka shares end down 0.7-pct

May 31, 2011 (LBO) – Sri Lankan shares ended weaker Tuesday despite retail buying of popular and speculative stocks, brokers said. Capital Development and Investment Company, which had shot up 303.10 rupees or

almost 75 percent Monday to 707.30 rupees, fell almost 10 percent Tuesday to end at 636.90 rupees. The main All Share Price Index closed at 7,418.07, down 0.67 percent (50.34 points) while the more liquid Milanka index fell 0.18 percent (12.68 points) to close at 6,853.61, according to stock exchange figures.

Turnover was 3.5 billion rupees.

Capital Trust Securities director Sarath Rajapaksa said he expects the market to pick up in June despite forthcoming initial public offers if brokers use margin credit facilities.

The IPOs including a big one by Softlogic Holdings in June are seen to have drained liquidity from the market as investors sold to raise cash to buy new shares.

Once again Nation Lanka Finance was the most actively traded stock Tuesday, closing at 32 rupees, up 2.50 with 17.2 million shares changing hands and adding 534 million rupees to the day’s turnover.

Singer Sri Lanka was also heavily traded, closing at 151.30 rupees, up 20.10 with almost 3.5 million shares done, adding 527 million rupees to turnover.