Sri Lanka stocks extend losses

June 08, 2011 (LBO) – Sri Lankan shares fell for the third straight day closing 0.5 percent lower Wednesday on retail profit taking and speculative trading dominated volume, brokers said. The main All Share Price Index closed at 7,257.70, down 0.51percent (36.84 points) while the Milanka Index of liquid ended the day down 0.24 percent (16.17 points) to close at 6,779.06 according to stock exchange provisional data.

Turnover was 3.3 billion rupees.

Brokers say investors were cashing into to buy into Softlogic, one of the largest initial public offers seen in recent years, while some punters were selling out of blue chips to buy into speculative stocks.

Panasian Power was the highest contributor to the day’s turnover with 98.3 million shares traded, adding 719 million rupees to turnover. It rose 20 cents to close at 7.70 rupees with one crossing at 7.80 rupees for five million shares.

Blue Diamonds Jewellery Worldwide PLC, another speculative stock closed at 5.90 rupees, up 1.10 or 22.92 percent with 51 million shares worth 284 million rupees changing hands.

E-Channeling closed 0.10 cents lower at 4.80 rupees with over 5.5 million shares traded.

Hunter & Company Limited, an illiquid trading firm a real estate heavy subsidiary rose to 1,292.10 rupees, up almost 10 percent or 117.40 rupees, extending gains.

John Keels Holdings closed at 299.90 rupees, down 0.70 cents with just over 1.7 million shares done of which 187,000 shares went in six crossings at 300.00 rupees each.

The rupee closed at 109.50/55 levels after trading stronger earlier in the day. The US dollar weakened in international markets following remarks by Fed chief that he may continue to print more money.