Sri Lanka's stock market ended the week a tad firmer on Friday but the turnover slumped to a two-year low as negative sentiments after a top regulator official was transferred kept cautious investors on the sideline. The island nation's main share index edged up 0.14 percent or 9.08 points to 6,406.52.
The day's turnover was 430.8 million Sri Lanka rupees ($3.9 million), lowest since December 14, 2009, and well below last year's average of 2.4 billion and this year's 2.5 billion. The bourse has fallen 7.4 percent since October 1 through Tuesday. It fell to Asia's sixth-best performer with a year-to-date loss of 3.46 percent after being on the top for most of 2011 and in 2009 and 2010.
Traders said investors were confused about a proposed law that will allow the government to take over the properties of 37 firms be taken over by the state. Pelwatte Sugar Industries PLC, one of the listed firms in the proposed act fell 1.9 percent as it announced to the bourse that it would delay a 305 million rupee rights issue.
The bourse witnessed a net foreign outflow of 3.2 million rupees on Friday, and thus far in 2011, offshore investors have sold 16.9 billion, and a record 26.4 billion in 2010. On Friday, the bourse was at neutral territory with the 14-day relative strength index was at 41.7 from Thursday's 41.8, above its lower neutral range of 30. Losers outperformed gainers by 97 to 75 on Friday, Thomson Reuters data showed. Friday's total volume was 27 million, lowest since December 15, against a five-day average of 63.3 million.
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