Thursday, November 5, 2009
Sri Lanka's stocks closed 1.65 percent lower Nov 05, 2009
Sri Lanka's stock index .CSE fell 1.65 percent to its lowest close in nearly 2 months on Thursday, as economic woes and trade union protests ahead of national polls rattled investor confidence. The benchmark Colombo All Share Index closed down 47.88 points lower at 2,954 and the Milanka Index of liquid stocks fell 1.06 percent (34.33 points) to 3,207.7 points according to the provisional Colombo Stock Exchange data.
The bourse has fallen 8.83 percent after the government said on Oct. 13 it will hold national polls by April.
Frequent protests and trade union actions have dampened investor confidence, which had been already on the decline on worries of political uncertainty ahead of national polls.
Investors are also wary of a likely loss of an EU trade concession.
A correction in the index was expected after the market doubled so far this year and became the second best performing market in the world with the benchmark index topping 3,000 points to an all time high.
Sri Lanka's economy was hit by excessive government spending, triggered high inflation, and high interest rates in the midst of a global downturn.
Diversified John Keells Holdings closed down 4.00 rupees at 4.00. Aitken Spence Hotel Holding close flat at 215.00 rupees, Commercial Bank of Ceylon closed at 167.50 up 50 cents.