Breaking News

U.K. July Retail Sales Rise 0.1%; Median Estimate 0.4% Increase
Tweet TWEET

Sri Lankan Equities Fall Most in 18 Months After 10% Limit on Stock Moves

Sri Lanka’s benchmark index tumbled the most in 18 months, falling for a third day, after the exchange imposed a 10 percent limit on daily stock moves.

The Colombo All-Share Index slumped 4 percent to close at 4,862.86, its biggest drop since Jan. 21, 2009. John Keells Holdings Plc, Sri Lanka’s biggest diversified company, dropped 2.2 percent, the most since July 29.

The South Asian nation’s benchmark index has climbed 44 percent this year, the best performance among Asia’s 16 biggest markets, as the end of a civil war spurred an economic recovery. The Colombo Stock Exchange on Aug. 5 set a 10 percent daily trading band on stocks after suspending four companies, including Dankotuwa Porcelain Plc, a maker and exporter of tableware.

“The market is still feeling the after-effects of last week’s price-band announcement; it seems liquidity has dried up in the speculative favorites,” said Channa Amaratunga, a director at CT Capital Ltd. in Colombo “Other shares are falling as traders try to make good settlements and margin calls. Maybe it’s the case that the market also needed a reality check.”

Dankotuwa shares, which doubled from July 29 to Aug. 3, fell by the daily limit today. People’s Leasing Finance Plc and Ceylon Brewery Plc also fell by the maximum 10 percent today.

To contact the reporter on this story: Anusha Ondaatjie in Colombo at anushao@bloomberg.net

Press spacebar to pause and continue. Press esc to stop.

Bloomberg reserves the right to remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.