Sri Lanka stocks ended flat on Friday as small investor sales of blue chips neutralised gains on the back of an introductory listing by the island's only specialised surgical hospital, brokers said. Asiri Medical Services Ltd, a subsidiary of Asiri Hospitals Ltd, listed 35.2 million shares at 10.00 rupees a share. The key Colombo all-share index ended down 0.04 points, or 0.54 points, at 1,475.18 points.
The bourse has gained almost 39 percent so far this year on upbeat corporate earnings and a buying spree in hotel and travel sector stocks in recent weeks, but has eased ahead of the 2005 budget due to be unveiled on November 18.
The index posted a string of life closing highs in October, peaking at 1,560.84 points. The Milanka index which tracks the most liquid and highly capitalised stocks dipped 0.01 percent, or 0.29 points, to close at 2,079.62 points.
The health care index gained on the debut of Asiri Medical Services, closing 8.99 percent higher, at 141.05 points. Traders said the market shrugged of a surprise increase in the Central Bank's benchmark policy rates on Wednesday.
"The Assure listing overshadowed the central bank's interest rate hike and it (the rate hike) did not have any significant bearing on market performance," said Hussain Gain, assistant manager of John Keels stockbroker's.
The central bank raised its overnight repurchase and reverse repurchase rates by 50 basis points each to 7.5 percent and 9.0 percent respectively after the close of trade on Wednesday.
Markets were shut on Thursday for the Hindu festival of Deepavali. It was the first revision of interest rates by the bank in more than a year, and was aimed at calming inflationary pressures stemming largely from high international oil prices.
Small investors sold shares of blue chip Commercial Bank of Ceylon Ltd, which brokers said halted the market's initial rally. Commercial Bank shares ended 0.31 percent lower at 162.00 rupees a share.