Bourse turnover slumps to near two-year low

Reuters: Sri Lanka’s stock market fell to a one-week low on Thursday in thin volumes, with turnover slumping to a near two-year low as many investors were on the sidelines, awaiting direction in an oversold market while foreign investors bought shares.

The main share index fell 0.35 per cent or 22.46 points to 6,323.59, lowest since 20 October.

Turnover was at Rs. 533.8 million ($ 4.8 million), lowest since 14 December 2009, and well below last year’s average of 2.4 billion and this year’s 2.6 billion. The bourse witnessed a net foreign inflow of Rs. 64.2 million on Thursday 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 sixth-best performer with a year-to-date loss of 4.71 per cent after being on the top for most of 2011 and in 2009 and 2010.

Hva Foods fell 1.66 per cent. It gained 33.8 per cent during a rally on Friday and Monday over speculation the Director General of the Securities and Exchange Commission was being forced out. The regulator has denied the rumours.

Conglomerate John Keells Holdings, which saw foreign buying of 273,441 shares, ended 0.26 per cent firmer at Rs. 190.50.

On Thursday, the bourse was in oversold territory, with the relative strength index falling to 28.83 from Tuesday’s 29.88, below its lower neutral range of 30.

Losers outperformed gainers by 133 to 52 on Thursday, Thomson Reuters data showed.

Thursday’s total volume was 34.3 million, lowest since 11 April, against a five-day average of 54.3 million. The 30-day and 90-day average trading volumes were 86.5 million and 109.8 million. Last year’s daily average was 67.9 million.

The rupee closed flat at 110.18/20 a dollar for a 19th straight day, as a State bank continued dollar sales at Rs. 110.20 amid strong importer dollar demand, dealers said.

The stock and foreign exchange markets were closed on Wednesday to mark the Deepavali festival.