Sri Lankan stocks end weaker

June 27, 2008 (LBO) – Sri Lankan stocks ended weaker Friday with the market failing to sustain the momentum generated by businessman Dammika Perera’s share deals in which he sold his power firm and became the single largest shareholder of Hayleys. The all share price index fell 0.35 percent (8.78 points) to 2,470.43 while the more liquid Milanka index lost 0.63 percent (19.08 points) to close at 3,000.83.

Turnover was 188 million rupees.

Brokers said investors were still worried about the impact on corporate earnings of worsening economic conditions, especially high inflation and interest rates.

But they said the fall in share prices could result in big deals like the ones concluded in the market during the week.

Dhammika Perera said he was selling his stake in Vallibel Power Erathna to a foreign investor and also bought big chunks of Hayleys.

Bartleet Mallory Stockbrokers said the deals done during the week were enough to produce gains in the market compared with the previous week.

But foreigners were more prominent on the selling side bringing a net weekly outflow of 202 million rupees, they said.