Sri Lankan stocks fall in low turnover
Saturday, 7 January 2012
COLOMBO, Jan 6 (Reuters): Sri Lanka's share market fell Friday for a fourth straight session, with turnover slumping to a new 25-month low, as large investors and funds stayed inactive and retail investors cashed shares in thin volume to generate funds to buy other stocks.
The main share index ended 0.2 per cent, or 9.23 points, weaker at 5,930.52, its lowest since December 22. Investors have been waiting for new regulations on easing credit from the island nation's Securities and Exchange Commission.
Large funds remained largely inactive Friday, awaiting guidance on credit limits from Tilak Karunaratne, the new head of the SEC. Brokers expect this guidance some time this month.
Shares in the market heavyweight and top conglomerate John Keells Holdings, which accounted for 13 per cent of turnover, ended 0.77 per cent weaker. Turnover was 336.7 million Sri Lanka rupees ($2.96 million), the lowest since December 14, 2009, and far below last year's average of 2.3 billion rupees.
Volume was 17.9 million shares. Last year's daily average was a record 102.7 million.
Foreign investors were net sellers of 50.5 million rupees worth of shares. Net foreign outflow so far this year is 154.2 million after 19.1 billion last year.
The index lost 8.5 per cent in 2011 and was Asia's 10th-best performer after being top in the region until June. It was Asia's best in 2009 and 2010. The rupee closed flat at 113.89/90 to the dollar for a 32nd straight session since a 3-per cent devaluation effective November 21, with the central bank selling around $20 million to defend it, dealers said.
The main share index ended 0.2 per cent, or 9.23 points, weaker at 5,930.52, its lowest since December 22. Investors have been waiting for new regulations on easing credit from the island nation's Securities and Exchange Commission.
Large funds remained largely inactive Friday, awaiting guidance on credit limits from Tilak Karunaratne, the new head of the SEC. Brokers expect this guidance some time this month.
Shares in the market heavyweight and top conglomerate John Keells Holdings, which accounted for 13 per cent of turnover, ended 0.77 per cent weaker. Turnover was 336.7 million Sri Lanka rupees ($2.96 million), the lowest since December 14, 2009, and far below last year's average of 2.3 billion rupees.
Volume was 17.9 million shares. Last year's daily average was a record 102.7 million.
Foreign investors were net sellers of 50.5 million rupees worth of shares. Net foreign outflow so far this year is 154.2 million after 19.1 billion last year.
The index lost 8.5 per cent in 2011 and was Asia's 10th-best performer after being top in the region until June. It was Asia's best in 2009 and 2010. The rupee closed flat at 113.89/90 to the dollar for a 32nd straight session since a 3-per cent devaluation effective November 21, with the central bank selling around $20 million to defend it, dealers said.