Sri Lankan shares retreat, LIOC gains 7-pct

EconomyNext – Sri Lankan shares retreated for the tenth straight session Friday with turnover collapsing to a 52-week low while Indian Oil Corp’s local unit gained sharply after news of a deal to develop its storage facility.

The All Share Price Index closed at 7091.25 points, down 17.82 points (0.25 percent) while the S&P SL 20 index, which tracks the top 20 largest and most liquid stocks, shed 20.86 points (0.51 percent) to close at 4047.97.

Turnover fell to 266 million rupees, a 52-week low with no crossings or off-the-floor negotiated deals, brokers said.

Lanka India Oil Corporation gained seven percent or three rupees to close at 45 rupees, hitting a high of 46.70, soon after news it had struck a deal to develop its oil tank farm in the eastern port of Trincomalee.

Visiting Indian Prime Minister Narendra Modi announced the deal with Sri Lanka’s state-run refiner Ceylon Petroleum Corporation after talks with President Maithripala Sirisena.

LIOC perked up in afternoon trade soon after the announcement and was the day’s fourth highest gainer and second most actively traded stock.

The Colombo bourse has slumped 3.5 percent so far this year, Sampath Securities said.