Sri Lanka stocks close lower on Dialog Telekom worries

May 23, 2008 (LBO) – Sri Lanka stocks closed 0.51 percent lower Friday affected by a 75 cent drop in the share price of Dialog Telekom after it released quarterly results showing profit falling by half, brokers said.

Total turnover was 301.8 million rupees with 9.9 million in volume trade. The All Share Price Index of the Colombo Stock Exchange closed 0.51 percent (13.15 points) lower at 2,585.78 points while the Milanka Index shed 1.22 percent (38.56 points) to close at 3,122.34 points.

The market was dragged down by the fall in Dialog Telekom which has a heavy weighting on the index.

Dialog closed 75 cents lower at 14.25 Friday. The celco’s profits had dropped 55 percent to 1.1 billion rupees owing to a tariff cut and rising costs which, brokers believe was the reason for the drop in the share price.

The market was active but with a lot of retail trades, Arjuna Dassanayake of DFCC Stockbrokers said.

Meanwhile, Kelani Tyres share gained 13.00 to close at 58 rupees. The deals added 74.36 million rupees to the turnover through strategic buying.

John Keells Holdings share trading at 117.00 added 41.8 million to the turnover.

Retail activity on plantation counters dwindled but brokers anticipate more trades in the coming week.