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Sri Lanka shares weaken further

Sept 25, 2008 (LBO) - Sri Lankan shares weakened further Thursday, dragged down by falls in blue chips as small investors stayed away, unable to make gains in a stagnant market, brokers said.
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It fell 25 cents to end at nine rupees with 619,700 shares traded.

LIOC was the second most actively traded stock.

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It fell 75 cents to 24.50 with 439, 600 shares changing hands.
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Brokers said investors who bought into the stock on expectations lower oil prices would improve its profits, may have sold after oil rebounded.

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To receive instant alerts from LBO on your Dialog mobile type 'lbo' and send to 678

The All Share Price Index fell 0.69 percent (15.30 points) to 2,212.57 while the Milanka fell 1.17 percent (29.42 points) to 2,489.26. Turnover was 82 million rupes.

The indices were dragged down by falls in Sri Lanka Telecom, Dialog Telekom, Lanka IOC and Distilleries, said Srimal Liyanage of Lanka Securities.

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He said sluggish conditions will continue unless there was market moving news.

"Retail investors looking for short-term gains can't do so because the market is stagnant," he said.


"Long term investors have holding power.

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They will wait."

Dialog was the most actively traded stock and also the most active in volume terms.

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