Sri Lanka stocks slump 1.4-pct

Oct 17, 2011 (LBO) – Sri Lanka’s stocks slumped 1.4 percent Monday with several illiquid stocks that were punted up falling steeply while liquid stocks also suffered losses, brokers said. In forex markets the spot dollar traded at 110.20/choice dealer said. The central bank had a repo auction to withdraw 30 billion in excess liquidity taking money at 7.08 percent.

Dealers said bonds rose slightly. A 4-year bond maturing in 2015 was quoted at 8.90/95 percent about 10 basis points up from Friday, and the 2016 was quoted at 9.00/9.10 percent up 10 basis points, dealers said.

Colombo’s benchmark All Share Index fell 92.4 points to close at 6,257.51 points while the Milanka Index of liquid stocks fell 66.9 points (1.14 percent) to close at 5,811 points.

Stocks lost 33.20 billion rupees in value. Turnover was below a billion rupees at 978.6 million rupees.

Laugfs Gas, in which the state-managed Employees Provident Fund of private citizens, bought 33 million shares at at 48 rupees shortly after it was driven up from 40.00 rupees, fell back another 1.50 rupees to 40.20 rupees.

Asian Alliance Insurance fell 30.50 rupees to 209.80, Colombo Pharmacy Limited fell 75.00 rupees to 1,450 rupees, DIMO fell 38.90 rupees to 1,261.10, Industrial Asphalts fell 50 rupees to 640 rupees and Singer Industries fell 27.30 rupees to 270.80 rupees.

Brokers say illiquid stocks are falling amid weak buying support.

John Keells Holdings closed at 199.70 down 40 cents, Hatton National Bank closed at 194.00 down 1.88, Dialog Axiata was flat at 8.10 rupees.