Shares end down 1.1% in thin trade

Reuters: The stock market fell 1.1 per cent on Friday, its ninth straight decline, in thin trade as concerns over a defaulted share deal weighed on sentiment.

The main share index fell 1.07 per cent, or 55.38 points, to 5,108.56, led by the telecom sector after top mobile operator Dialog Axiata on Friday posted a posted a Rs. 530.9 m loss for the March quarter. Investigations into a deal in which the State-owned National Savings Bank (NSB) had decided not to settle a transaction for a 13 per cent stake in The Finance Company PLC have also hit sentiment, dealers said.

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NSB had bought The Finance Company shares for Rs. 49.75, despite the market price of the listed financial share prevailed at Rs. 30.

The Treasury has ordered an investigation into the deal while the Securities and Exchange Commission is conducting a separate investigation.

Shares in The Finance Company edged 0.8 per cent up to Rs. 24.40 on Friday a day after it fell 12.50 per cent.

Turnover was Rs. 346.4 million, well below this year’s daily average of Rs. 1.1 billion.

Despite the fall, the market saw foreign inflows of Rs. 58 million, extending the net foreign inflow so far this year to Rs. 21.9 billion.

The rupee ended weaker at 128.10/25 against the dollar from Thursday’s close of 127.70/80, on importer dollar demand.

The rupee gained 1.6 per cent last week after the Treasury Secretary warned of resumed market intervention if the currency dropped beyond “tolerable” levels.