Sri Lanka stocks slump 1.3-pct

July 21, 2011 (LBO) - Sri Lankan stocks slumped Thursday with the main index reaching the lowest level this year and brokers saying many shares were overvalued and foreigners were getting out of the market.



Recently listed Nanda Investment was the top percentage gainer and closed at 27.90 rupees, up 9.30 rupees or 50 percent. The main All Share Price Index closed at 6,598.







97, down 1.25 percent (83.49 points) while the more liquid Milanka index fell 1.



31 percent (81.11points) to close at 6,098.94, according to stock exchange figures.

Turnover was 1.09 billion rupees. There were 40 gainers and 186 losers.

"Unless there is big foreign participation we cannot expect remarkable growth from our market in the near future," said Capital Alliance Securities head Harinlal Athurupana. "Due to prevailing adverse European market conditions we cannot expect big foreign participation.

”

He said many shares were overvalued and foreigners are withdrawing their money.

John Keells Holdings was the most traded in terms of turnover, closing at 199.

90 rupees, down 2.70 rupees with 797,934 shares including two crossings or off-market private deals of 336,134 shares at 200 rupees each generating 159 million rupees.

Softlogic Holdings was the second largest contributor of the day with three million shares traded generating 80 million rupees. Softlogic Holdings closed at 24.

50 down 70 cents.