Wednesday Nov 13, 2024
Wednesday Nov 13, 2024
Wednesday, 26 October 2011 01:34 - - {{hitsCtrl.values.hits}}
COLOMBO (Reuters): Sri Lanka’s stock market fell more than 1 percent in thin volume and turnover due to a technical correction after gaining 2.3 percent in the previous two sessions due to speculative buying amid rumours the regulator’s No. 2 was forced out.
The island nation’s main share index fell 1.22 percent or 78.31 points to 6,346.05, from its highest since Oct. 18.
Three analysts on condition of anonymity said if Securities and Exchange Commission (SEC) Director General Malik Cader resigns, as is rumoured, it would have an adverse impact on the bourse in long run.
Other analysts said the market viewed Cader’s resignation positively because most retail investors think that would allow more speculative trading let them dispose fundamentally unsound stocks they bought at high prices.
The bourse has fallen 6.5 percent this month alone. It slipped to Asia’s sixth-best performer with a year-to-date loss of 4.37 percent after being on the top for most of 2011 and in 2009 and 2010.
The bourse witnessed a net foreign inflow of 25.1 million rupees on Tuesday and thus far in 2011, offshore investors have sold 17.1 billion, and sold a record 26.4 billion in 2010.
Hva Foods which had gained 33.8 percent in the previous two sessions slipped 10.8 percent on Tuesday.
Conglomerate John Keells Holdings which saw foreign buying of 250,527 shares, ended 1 percent weaker at 190 rupees.
On Tuesday, the bourse ended in oversold territory, with the relative strength index falling to 29.88 from Monday’s 33.90, below its lower neutral range of 30.
Losers outperformed gainers by 166 to 38 on Tuesday, Thomson Reuters data showed.
Turnover was at 700.1 million Sri Lanka rupees ($6.4 million), lowest since Oct. 20, well below last year’s average of 2.4 billion and this year’s 2.6 billion.
Tuesday’s total volume was 35.8 million, lowest since April 11, against a five-day average of 61.4 million. The 30-day and 90-day average trading volumes were 91.8 million and 111.5 million. Last year’s daily average was 67.9 million.
The rupee closed flat at 110.18/20 a dollar for a 18th straight day, as a state bank continued dollar sales at 110.20 rupees amid strong importer dollar demand, dealers said.
The central bank raised the benchmark 91-day T-bill rates by 5 basis points to an 11-month high of 7.29 percent.
The stock and foreign exchange markets will be closed on Wednesday to mark the Deepavali festival. Normal trading will resume on Thursday.
