The Colombo bourse fell sharply yesterday with the All Share Price Index losing 90.38 points (4.94%) while the Milanka lost 127.20 points (6.17%) on a turnover of Rs.134, up from Rs.69.5 million from the previous trading day on Friday.

"The market took a big tumble," Prashan Fernando of DFCC Stockbrokers said. "It was virtually free fall."

While a few retailers and some high net worth investors are engaging in bargain picking, the majority preferred to wait on the sideline accounting for the low turnover.

"It’s difficult to gauge the bottom of this market," explained a broker. "Somebody placing a buy order below the previous day’s closing price of a share will find his offer snapped up and the share going cheaper. Some people are selling on the assumption that the market will drop further tomorrow."

JKH was the larges traded stock yesterday with nearly 0.3 million shares done between Rs.63 and Rs.67 losing Rs.1.75 to close at Rs.63 generating a turnover of Rs.18.6 million.

Janashakthi Insurance saw a crossing of 2 million shares at a price of Rs.10 closing flat at Rs.8.50 on a trading range of Rs.8.25 to Rs.10 contributing Rs.17.5 million to turnover.

Brokers said that this may have been an inter group transfer but there was no confirmation. Similarly, 0.3 million Royal Palm Beach Hotels also crossed at Rs.28 with a further 1,000 shares of this stock done at Rs.27. This too was believed to be an inter group transfer within the controlling interest.

Distilleries, with 0.2 million shares traded, lost Rs.3 to close at Rs.51 on a trading range of Rs.50 to Rs.52 generating Rs.9.9 million to turnover.

Dialog lost 75 cents closing at Rs.7 with nearly 0.8 million shares done between Rs.7 and Rs.8 while SLT lost Rs.3 on a trading range of Rs.33.75 to Rs.36, closing at Rs.34 with 45,100 shares traded.

CIC announced a dividend of 50 cents per share on both its voting and non-voting shares with the stock trading XD from November 14.

There were sharp falls though on small quantities of pricey stock like Bukit Darah (down Rs.48), J.L. Morison (down Rs.30), Indo Malay (down Rs.28.50), Aitken Spence (down Rs.19.75) and Carsons (down Rs.13.75).

Gainers included Asian Alliance Insurance (up Rs.4.75), Alufab (up Rs.3), Keells Food (up Rs.1.25) and Ceylon Insurance non-voting (up Re.1), also on small quantities.