Sri Lanka shares weaken, DFCC trade pumps up volume

Nov 14, 2008 (LBO) – Sri Lankan shares continued to slide Friday with trading volumes increased by a large transaction in DFCC and a net inflow of foreign funds, although brokers said they expect the market to remain bearish. Foreign buying was 372 million rupees and sales 108 million rupees with a net inflow of foreign funds of 264 million rupees.

In currency markets the rupee traded at 110.00 rupees to the greenback with a state bank intervening, dealers said.

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The All Share Price Index lost 1.55 percent (28.14 points) to end at 1,783.94 while the Milanka fell 1.60 percent (32.41 points) to 1,989.19. Turnover was 593 million rupees.

“The market could continue the downward trend until there’s clarity about the global and local economic prospects,” said Chinthana Hatangala of Lanka Securities.

However, there might be some volatility in prices depending on company results and other corporate announcements.

Hatangala said turnover was relatively higher Friday compared with the last three days.

“Today there were three crossings that pumped up turnover. Other transactions were not that significant.

DFCC ended two rupees weaker at 83 rupees with 4.39 million shares changing hands at 82 rupees a share, a transaction that added 360 million to the day’s turnover.