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Saturday, 26 November 2011 01:21 - - {{hitsCtrl.values.hits}}
Reuters: Sri Lanka’s stock market closed down 1.04 per cent on Friday, bouncing back after an erroneously entered trade triggered a panic selloff that forced a 30-minute trading halt when the sensitive Milanka Price Index dropped more than five per cent.
Investors dumped shares amid fears of higher inflation and interest rates after this week’s currency devaluation, and an erroneous trade in Distilleries Company of Sri Lanka PLC triggered panic.
The main share index plummeted 3.08 per cent in early trade but closed 1.04 per cent or 60.99 points weaker at 5,806.76, lowest since 2 September 2010.
The Colombo Stock Exchange in a statement said it was investigating the error trade.
The Milanka index, which comprises the most liquid 25 stocks, fell 5.13 per cent to hit year low of 4,881.74 on an error trade and closed 1.8 per cent or 92.58 points weaker at 5,052.91.
Shares of Distilleries closed 3.74 per cent weaker at Rs. 144 a share from Thursday’s close of 149.60.
The plantation sector index fell 2.53 per cent on Friday, extending its weekly fall to 13.24 per cent in reaction to a Budget proposal to redistribute 37,000 acres of unused State planting land to small farmers.
Market heavyweight John Keells Holdings PLC ended 0.51 per cent weaker at Rs. 174.10.
The day’s turnover was Rs. 1.63 billion ($ 9 million), well below last year’s average of 2.4 billion and this year’s 2.4 billion. Average turnover in the last 10 sessions has been Rs. 986 million.
Total volume was 106.3 million shares, against a five-day average of 60.7 million. The 30-day and 90-day average trading volumes were 55.9 million and 101 million. Last year’s daily average was 67.9 million.
The bourse has fallen 14.4 per cent since 1 October and it is Asia’s 11th-best performer with a year-to-date loss of 12.5 per cent.
The bourse saw a net foreign inflow of Rs. 18.2 million on Friday ending six straight outflow sessions, but thus far in 2011, offshore investors have sold 17.3 billion, and a record 26.4 billion in 2010.
Losers outnumbered gainers by 141 to 71 on Friday, Thomson Reuters data showed.
The rupee closed flat at 113.89/90 rupees a dollar from Thursday’s close in thin trade, dealers said.
Dealers also said the pressure on the rupee eased after the Central Bank’s comments to Reuters on Wednesday.
Two currency dealers Reuters spoke to said the Central Bank had sold at least $ 120 million since the devaluation to defend the currency at the new level amid depreciation pressure.
