But by close of trading the market was tidily up with the All Share Price Index gaining 35.3 points (1.19%) and the Milanka 63.91 points (1.92%) on a turnover of Rs.951.3 million, up from the previous day’s Rs.763.6 million.

Gainers outpaced losers 96 to 53 with the All Share Price Index closing at 3018.60, above the 3,000 point barrier it had cleared in the bull run that preceded this week’s free fall.

"I would say it was a phenomenal day the like of which I have not seen in my 19 years in the stockbroking industry," Arjuna Dassanayake of Acuity Stockbrokers said. "First of all the market was sharply down but thereafter it clawed its way up with some of the ground lost earlier in the week recovered."

Dassanayake said that there was a lot of misjudging of the market as well as margin calls that forced players punting on borrowed funds to sell, thereby further depressing prices.

However, there was buying in the market with the realization that Raj Rajaratnam’s Galleon Fund had been a net seller this year and also that the loss of GSP+ should not have a major impact on the bourse.

"The garments industry is largely unquoted on the Colombo Stock Exchange although there are a couple of quoted textile manufacturers like Hayleys MGT and Kuruwita Textiles," an analyst said. "The quoted banks, of course, have some exposure to the industry."

Dassanayake of Acuity also said that some retailers had over-reacted and engaged in panic selling early in the day. The market had begun to turn with the support level reached when the All Share Price Index was at about 2,850.

"We had a turnover of between Rs.250 million to Rs.300 million when the market began to turn," he said.

JKH which slumped to a low of Rs.135.50 and a high of Rs.144.50 closed flat at Rs.140 with over 0.7 million shares traded generating the day’s highest turnover of Rs.104.4 million.

Seylan (non-voting) with nearly 3.6 million shares traded between Rs.15.50 and Rs.17.50 closed 25 cents up at Rs.17.25 coming second in the turnover league with a contribution of Rs.61.8 million.

Browns, up Rs.4.25 to close at Rs.81 on over 0.6 million shares, Lanka Lubricants, up Rs.3.50 to close at Rs.179 on over 0.2 million shares and Pan Asia, up 75 cents to close at Rs.21.75 on over 1.5 million shares followed in that order.

NDB was down Rs.2.25 to close at Rs.188 on nearly 0.2 million shares on a trading range of Rs.180 to Rs.188 while DFCC gained Rs.1.25 to close at Rs.152.75 on nearly 0.2 million shares done between Rs.146 and Rs.154.50.

Nation Lanka Finance (previously Ceylinco Finance) announced a one for one rights issue at Rs.12 a share with nearly 20 million new shares to be issued to raise working capital requirements.

Vallibel Power announced that it has acquired the entirety of the shares of Country Energy (Pvt) Ltd ie. 16,000,000 shares for Rs.200 million on Tuesday.

Country Energy has all statutory approvals for two hydro power projects - Denawaka Ganga Hydro Power Project with an approved capacity of 4.9 MW and the Kiriwaneliya Hydro Power Project with an approved capacity of 3.8 MW, located in the Ratnapura and Nuwara Eliya Districts.

At the time of acquisition Country Energy had executed Standardized Power Purchase Agreements with the Ceylon Electricity Board for both projects. Additionally, Country Energy has already incurred preliminary expenses for site clearing and internal road construction etc. at the project sites.