Indices decline

The indices at the Colombo Stock Exchange declined for the second day on low turnover while Asian markets were all in the red as regulators stepped into arrest inflation and asset bubbles building up. The ASPI declined 27 points (-0.9 percent) to end at 2,997 while the MPI lost 22 points (-0.6 percent) to end at 3378.

Turnover for the day was Rs 318 million coming from Seylan Bank non voting shares (Turnover of Rs 35 million, share closed unchanged at Rs 17.25), John Keells Holdings (Turnover of Rs 33 million, share closed at Rs 141.75, down 2.25) and DFCC Bank (Turnover of Rs 23 million, share closed down at Rs 149.00, losing Rs 1.50).

In India, the Reserve Bank of India ordered banks to subscribe to Government bonds instead of making loans to the private sector. This action is expected to curb inflationary pressure building up in the system.

In Hong Kong, the Monetary Authority increased the down payment on luxury to 40 percent from the current 30 percent. This is expected to prevent speculative bubbles building in the property market.

Many such deflationary measures by economies in Asia had an impact on commodity and share prices. Source: First Guardian Equities