The Colombo bourse yesterday reacted sharply to political developments with both the All Share and Milanka price indices posting their sharpest single day declines in recent days on a modest turnover of Rs.253.4 million, down from Monday’s Rs.254.1 million.

There were only eight shares that gained in price yesterday against 115 decliners with the trading boards a sea of reds.

The All Share Price Index was down 48.26 points (1.65%) and the Milanka by 52.61 points (1.57%) with the biggest trades for the day being Dockyards and non-voting shares of Tokyo Cement with contributions from JKH, HNB (non-voting) and DFCC.

All these stocks dropped in price with Dockyards losing Rs.4 to close at Rs.186 with nearly 0.3 million shares traded between Rs.185 and Rs.190 generating the day’s top Rs.50.4 million turnover.

Tokyo X edged down 25 cents to Rs.16.75 on over a million shares done between Rs.16.75 and Rs.17.25 while JKH was down Rs.3 to Rs.139 on 90,700 shares.

"The market was definitely reacting to political events," Prashan Fernando of Acuity Stockbrokers commented.

HNB X was down a rupee to Rs.88 on over 0.1 million shares done between Rs.87.75 and Rs.90 while DFCC lost Rs.3.50 to close at Rs.144 on 78,000 shares traded between Rs.143 and Rs.149.

Brokers said that there was a little foreign interest in JKH but the market sentiment tilted strongly towards watching from the sidelines while political events ran their course.