Sri Lanka stock close 0.6-pct lower

Minister appoints Dr Swaminathan to IPACSL as Chairperson

June 10, 2011 (LBO) – Sri Lanka stocks closed 0.6 percent lower Friday after seeing a spurt of speculative trading when Lanka Orix Leasing Company sold out of People’s Merchant Bank, a smaller leasing firm, brokers said. Stocks purchased by Jayaweera have been been subject to heavy speculative trading in recent weeks, though no material changes within their operations were apparent.

These included Panasian Power and Colombo Land.

Blue Diamonds Jewellery Worldwide closed at 6.70 rupees, with 20 million shares worth 131.9 million rupees changing hands.

The main All Share Price Index closed at 7,231.92, down 0.66 percent (47.70 points) while the Milanka index of liquid stocks also fell 0.36 percent (24.44 points) to close at 6775.88.

Turnover was 3.316 billion rupees.

Panasian Power closed at 6.80 rupees, down 70 cents with 88 million shares worth 612 million rupees being traded, becoming the top contributor to turnover.

People’s Merchant Bank traded over 20 million shares after Lanka Orix Leasing Company sold 7.3 million shares or a 19.69 percent stake for 21 rupees.

Sources familiar with the deal said some of the shares were bought by Emagewize a firm connected to businessman Dilith Jayaweera.

The stock was trading at high as 42 rupees in mid-morning trade up 7.10 rupees or 30.87 percent, and closed at 29.10 rupees Thursday.