Sri Lanka stocks slide 1.7-pct on large caps

Aug 21, 2013 (LBO) – Sri Lanka’s stocks plunged 1.7 percent Wednesday as three large capitalized stocks that had taken the market up in recent weeks, lost ground, brokers said. The benchmark Colombo All Share Index closed 107.6 points lower at 6,116.67 down 1.73 percent and the S&L20 Index slid 1.7 percent to close at 2,434.3 points down 58.8 points.

Turnover was 955 million rupees.

On Thursday 51 stocks advanced but 145 stocks lost ground wiping out 44 billion rupees in stock values.

Foreign investors bought stocks worth 632 million rupees and sold 295 million rupees of shares.

Recent high flyers Ceylon Tobacco Company closed at 1,290.0 rupees down 69.40, John Keells Holdings closed at 249.40 down 9.90 rupees and Nestle Lanka closed at 2,340.10 down 204.70.

The weakness in key large cap stocks triggered a sell-off in other stocks, brokers said.

Corporate earnings have been week in the June quarter, though there is signs that economic activities may be bottoming out.

Banks have also suffered losses on gold loan and have started to make provisions.

Commercial Bank closed at 118.50 rupees down 1.10, HNB closed at 154.50, down 50 cents, DFCC Bank closed at 128.00 down 1.10.

Dialog Axiata closed at 8.50 flat and Sri Lanka Telecom closed at 40 rupees up 10 cents.

Distilleries Corporation closed at 192.00 rupees down 2.90, Aitken Spence closed at 121.00 rupees down 1.0 rupees.

Royal Ceramics closed at 89.00 rupees down 1.00 rupees, Lanka Tiles closed at 72.60 down 40 cents. Tokyo Cement closed at 25.30 rupees down 60 cents.