Emerging market stocks slide, CSE follows

Most Asian emerging markets saw their stocks fall on concerns that equity gains have outpaced real economic gains. The Chinese market index, the Shanghai Composite Index was down 5 percent while the Russian market Index , the MICEX fell about a percent as were India's Sensex and Singapore's Straits Times Index.

The Hong Kong market with its high level of exposure to China was down 2 percent. Bangladesh's Dhaka Stock Exchange General Index and the Philippines' IDX and Japan's Nikkei Index were the only benchmarks to buck the trend with gains of 1.3 percent, 1.2 percent and 0.3 percent. In the meantime, Temasek Holdings, Singapore's Sovereign Wealth Fund, disclosed a loss in value of assets of more than US$27 billion following the global equity crash of 2008.

The company plans to invite the public to make equity investments so as to retain its holdings in many industries that are seen as strategic to Singapore's economic interest.

Investors took profits after the broader ASPI hit fresh year highs. The ASPI closed down 10 points (-0.4 percent) to close at 2,510, whereas the MPI which tracks the CSE's most liquid stocks lost 14 points (0.5 percent) to end at 2,843. Turnover for yesterday totaled Rs 362 million.

Dialog Telekom closed unchanged at Rs 6.00m while Sri Lanka Telecom closed unchanged at Rs 47.50. John Keells Holdings was down Rs 2.25 to close at Rs 138.25 while Aitken Spence closed up Rs 1.25 to end at Rs 645.00.

Source: First Guardian Equities