COLOMBO, Sept 26 (Reuters) - Sri Lankan shares plumbed a new two-year low for a second straight day on Friday, falling 0.16 percent with local and global economic conditions continuing to weaken investor sentiment.
The Colombo All-Share indexfell 3.52 points to 2,209.05, its 14th fall in 15 sessions. The bourse hit 2,199.97 on August 31, 2006.
The bourse has fallen 8 percent so far this month, and is down around 13 percent so far this year.
"The market is down as some of the big cap companies are down. There is nothing to move the market up," said Harsha Fernando, chief executive of SC securities in Colombo.
"It's the economic situation and the global situation which hurts investor sentiment."
Top private lender Commercial Bank of Ceylonclosed 2.26 percent weaker at 108 rupees a share, calculated on a weighted average.
Diversified holding company Carson Cumberbatch, which dominates palm oil trading in Sri Lanka, dropped 1.68 percent to 220 rupees.
Conglomerate John Keells Holdingsclosed 0.29 percent weaker at 86.25 rupees, despite offering on Thursday to buy back one share for every 25 shares held at 90 rupees for 2.2 billion Sri Lankan rupees ($20.40 million).
Top mobile phone operator Dialog Telekomclosed flat at 9.00 rupees while leading fixed line operator Sri Lanka Telecom also closed flat at 42 rupees a share.
Market turnover was 175.22 million rupees, well below last year's daily average of 400 million rupees.
Traders said high interest rates and high inflation had slammed second-quarter corporate earnings. But the 7 percent growth seen in the second quarter and easing inflation may improve sentiment if the trend stays, analysts say.
The rupeeclosed flat at 107.89/90 per dollar, from Thursday's close.
The interbank lending rate or call money raterose to 19.185 percent, up from Thursday's 19.118 percent. (Editing by Bryson Hull)
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