Sri Lankan stocks fall sharply in thin trading

Nov 21, 2008 (LBO) – Sri Lankan stocks fell sharply Friday with a small net foreign inflow although trading volumes were low in what share market analysts described as a delayed reaction to the plunge in global markets yesterday.

Chemical Industries (Colombo) with 14.2 million rupees, and Lanka Lubricants with 12.9 million rupees topped the days turnover.

The All Share Price Index fell 2.45 percent (41.90 points) to close at 1,669.88 while the more liquid Milanka Price Index dropped 2.96 percent (56.95 points) to 1,870.26 points.

Turnover was 75 million rupees.

Analyst say the Colombo index was slow to react to the sudden drop in regional and global markets.

“This is a late reaction to the plunge in the global market over the past two days,” says Geeth Balasuriya of Hatton National Bank Securities.

“The fall today didn’t follow any economic, political or corporate earnings.”

Despite the market’s bleak performance foreign buying was at 19.3 million rupees, while foreign selling was amounted to 8.1 million

Bourse heavyweights Lanka Lubricants was down one rupee to close at 96, Commercial Bank was down 2.50 to close at 81.25 and Dialog Telekom fell 25 cents to close at 6.50 rupees.