Colombo stocks sink on major news developments
2008-10-08 15:16:53

Colombo stocks fell drastically on Wednesday with the main benchmark index down by 3.04 % on the back of major new-breaking events the same day where former President Chandrika Kumaratunga was ordered by the Supreme Court pay compensation to the government and former Treasury Secretary Dr. P.B. Jayasundera apologized in the same court in another case.

The All Share Index fell by 64.05 points to 2,043.13 with brokers saying it may fall below 2,000 in the next few days. The Milanka slumped by 3.56% or 83.33 to 2,259.40. Turnover was Rs 215.9 million.

Among the major falls was Dialog, down by 75 cents or 9.68 % to Rs 7 and Distilleries down by Rs 4.25 to Rs 65.75. A large stock of 8.7 million shares of Janashakthi gained by 50 cents to Rs 9.50 but it was unclear as to the reason for large scale interest in this stock. Maskeliya Plantations, whose owner (the Richard Pieris Group) wants to sell out, gained by 50 cents to Rs 28.75. Richard Pieris & Co on the other hand lost Rs 1.75 to Rs 45.25 for a stock of 87,400 shares.

Earlier on Wednesday, the Supreme Court overturned the Water’s Edge Golf course transaction and ordered the buildings and land to be returned to the state. President Kumaratunga was ordered to pay compensation of Rs 3 million. In the LMSL privatization case which resumed today, the court ordered Dr Jayasundera to apologise for continuing in office as Treasury Secretary ever after the privatization of this former state company was declared a corrupt deal. .