June 22, 2011 (LBO) – Sri Lankan stocks closed almost 01 percent lower Wednesday with continuous forced selling of client portfolios where the margin provided is in excess of 50 percent, brokers said. The Colombo Fort Land closed at 78.50 rupees down 40 cents or 0.51 percent with a solitary crossing of 250,000 shares at 88 rupees. Aitken Spence Hotels closed at 75.30, down a rupee or 1.31 percent with a single crossing of 01 million shares at 76 rupees.
The All Share Price Index closed at 6,927.03, down 0.99 percent (69.61 points) while the Milanka Price Index of more liquid stocks closed at 6,516.06, down 0.84 percent (55.28 points), according to stock exchange provisional figures.
Todayâ€™s ASI close was the lowest since January 11, 2011 and the MPI close was the lowest since September, 15 2010.
Turnover was 1.7 billion rupees. There were 52 gainers and 173 losers.
â€œWho should be blamed for this unwarranted market massacre where the retail investors are the worst affected?â€ asked Capital Trust Securities Director and Head of Research Sarath Rajapaksa.
He said strong company fundamentals and the robust economic fundamentals are definitely not reflected in the market performance.
Broker credit to clients have been restricted by the Securities and Exchange Commission, the market regulator, amid fears of a stock market bubble and brokers given time till the year-end to clear credit accounts.
Environmental Resources Investment closed at 60.70 rupees, up 30 cents or 0.5 percent.
Brokers said there was no meeting scheduled for Wednesday by the markets regulator on the investigation into the company, contrary to rumours.
Once again, East West Properties was the highest contributor of the day to turnover and closed at 16.30, up 1.20 rupees or 7.95 percent. More than 16 million East West Properties shares were traded generating 254 million rupees.
Brokers said seven million shares of People’s Merchant Bank changed hands with heavy buying by high net worth investors and it closed at 27.30 rupees, up 3.40 rupees or 14.29 percent.
Kalamazoo closed at 3,214 rupees, up 714 rupees or 28.56 rupees. Eastern Merchant closed at 1249.90, up 249.80 or 24.98 percent.
Panasian Power closed at 5.20 rupees, down 20 cents or 3.70 percent with more than 22 million shared traded, becoming the most active stock of the day.
Serendib Land closed at 2214 rupees, down 536.00 rupees or 19.49 percent. Lanka Ashok Leyland closed at 4,000 rupees down 800 rupees or 16.67 percent.