Sri Lankan stocks ended flat on Monday in thin trade as investors focused on the initial public offering of the local arm of Indian Oil Corporation, which officials said was oversubscribed on its opening day. Details of Lanka IOC's share issue are due to be released later on Monday.
The key Colombo all-share index ended down 0.08 percent, or 1.22 points, at 1,493.61 points. The bourse has gained more than 40 percent so far this year on upbeat corporate earnings and a strong leisure sector.
The Milanka index which tracks the most liquid and highly capitalised stocks - fell 0.17 percent, or 3.61 points, to 2,120.66 points.
Brokers said investors and brokering firms were busy with Lanka IOC's IPO, the biggest offering since 2002.
"The market was dead today, it will continue like this until the IOC share starts trading in late December. That's where the money is right now," said Hussain Gani, a broker with John Keells Stock Brokers.
Lanka IOC is selling a 25 percent stake worth 3.6 billion rupees ($34 million) to fund expansion of its fuel outlets, renovate an oil tank farm and build a lubricant plant.
"The issue has been oversubscribed. We are closing today," said Kishan Kuruppu, Managing Director of SSP Corporate Services Pvt Ltd, who are overseeing the issue.
Lanka IOC set a price range of between 23 rupees to 27 rupees a share for the issue.
Market turnover was very low at 22 million rupees, with foreign purchases of 1.0 million rupees and foreign sales of 1.0 million rupees.
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