Sri Lanka stocks plunged to record lows

Sri Lankan stocks crashed nearly seven percent at Friday’s close as socialist President-elect Mahinda Rajapakse narrowly beat a market-friendly favourite, brokers said. Sri Lankan stocks crashed nearly seven percent at Friday’s close as socialist President-elect Mahinda Rajapakse narrowly beat a market-friendly favourite, brokers said. The benchmark All Share Price index plunged 174 points to 2,325, after jumping a record high of five percent on Wednesday. Thursday’s close in terms of absolute numbers is the lowest since Nov. 5, 2003, remarked Tushara Jayaratne, Assistant Manager Marketing Colombo Stock Exchange.

“Everybody’s dumping — there are net sellers in the market today following early election results,” said Vajira Premawardhana, head of research at LOLC Securities.

“It will be a slow death,” he added.

The liquid Milanka Price index, which tracks the most traded 25 stocks, dived 272 points to 3,011.

The day’s turnover rested at Rs. 489.49 million with Rs. 79.6 million in foreign purchases and Rs. 51.7 million in sales, according to provisional data posted on the CSE website.

Heavy selling orders were noted across the board led by bluec