Stock market at two-week low; block deals boost activity

Reuters: Sri Lanka’s stock market fell to near a two-week low on Monday as retails investors stayed inactive but turnover and volume rose after block deals in Galadari Hotels Lanka PLC and Commercial Bank of Ceylon PLC.

The country’s main share index fell 0.46 per cent or 29.19 points to 6,319.25, lowest since 20 October.

The day’s turnover was Rs. 2.4 billion ($ 21.8 million), the highest since 10 October, in line with last year’s average of 2.4 billion but below this year’s 2.6 billion.

Foreign investors bought 688,700 shares of conglomerate John Keells Holdings, which fell 0.73 per cent to Rs. 189.10.

Analysts said investors snapped up shares of Sri Lanka’s biggest private lender Commercial Bank, which accounted for 11 per cent of turnover. It closed 0.28 per cent firmer at 108.40 rupees. The bourse witnessed a net foreign outflow of Rs. 5.1 million on Monday and thus far in 2011, offshore investors have sold 17 billion, and a record 26.4 billion in 2010. The bourse has fallen 6.8 per cent this month alone. It slipped to Asia’s ninth-best performer with a year-to-date loss of 4.77 per cent after being on the top for most of 2011 and in 2009 and 2010.

The rupee weakened to 110.18/20 a dollar from Friday’s 110.09/10, as the central bank raised the dollar trading band by 10 cents to 109.80/110.20 from 109.70/110.70, dealers said.