Sri Lanka's share market edged down on Friday for a fourth straight session on uncertainty over interest rates and exchange rates amid the regulator probing in to share manipulation.
The market was up for the most of the day due to retail buying in battered shares but the main share index ended 0.09 percent, or 5.47 points weaker at 5,781.13, lowest since Sep. 1 2010.
It is the worst performer among Asian markets with a 4.83 percent loss so far this year.
Bourse hit a new 16-month low on Friday amid the reports of the Securities and Exchange Commission (SEC) resuming share manipulation probe and concerns over possible rise in market interest rates and a further rupee devaluation.
The market has fallen 2.5 percent since opening on Tuesday, the day after the SEC allowed brokers to extend more credit to clients, which some brokerages had touted as the panacea for the slumping bourse.
Shares in John Keells Hotels PLC fell 2.52 percent to 11.60 rupees on light trade, while retail favourite share Environmental Resources Investment PLC fell 1.63 percent to 30.10 rupees.
Commercial Bank of Ceylon PLC, which was heavily traded for the day on a block trade, edged up 0.1 percent to 100 rupees.
The day's turnover was 741.7 million Sri Lanka rupees ($6.51 million), lowest since Jan. 11, and far below last year's average of 2.3 billion. Volume was 51.3 million shares. Last year's daily average was a record 102.7 million.
Foreign investors were net sellers of 47.2 million rupees worth of shares, and they have sold 406.1 ,illion so far this year after 19.1 billion in 2011.
The index lost 8.5 percent in 2011 and was Asia's 10th-best performer after being top in the region until June. It was Asia's best in 2009 and 2010.
The rupee closed flat at 113.89/90 to the dollar for a 41st straight session since a 3 percent devaluation on Nov. 21, with the central bank selling around $15 million to defend it, dealers said.
The bank has spent more than $985 million keeping the exchange rate steady since Nov. 21. It spent a net $1.79 billion in the first 10 months of last year to keep depreciation at bay. ($1 = 113.9300 Sri Lanka rupees)
