Sri Lankan stocks at 16-month low

21 Jan, 2012

Sri Lanka's share market edged down on Friday for a fourth straight session on uncertainty over interest rates and exchange rates amid the regulator probing in to share manipulation. The market was up for the most of the day due to retail buying in battered shares but the main share index ended 0.09 percent, or 5.47 points weaker at 5,781.13, lowest since September 1 2010.
It is the worst performer among Asian markets with a 4.83 percent loss so far this year. Bourse hit a new 16-month low on Friday amid the reports of the Securities and Exchange Commission (SEC) resuming share manipulation probe and concerns over possible rise in market interest rates and a further rupee devaluation.
The market has fallen 2.5 percent since opening on Tuesday, the day after the SEC allowed brokers to extend more credit to clients, which some brokerages had touted as the panacea for the slumping bourse. Commercial Bank of Ceylon PLC, which was heavily traded for the day on a block trade, edged up 0.1 percent to 100 rupees. The day's turnover was 741.7 million Sri Lanka rupees ($6.51 million), lowest since January 11, and far below last year's average of 2.3 billion. Volume was 51.3 million shares. Last year's daily average was a record 102.7 million.

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