* Bourse falls for fourth session
* Corporate earnings so far fail to impress-traders
* Rupee weaker as cenbank raises trading band
COLOMBO, Aug 5 (Reuters) - Sri Lanka's bourse ended weaker in thin volume on Friday, in a fourth straight fall as the global market downturn began to infect the usually insulated bourse, while the rupee weakened after the central bank raised its trading band, traders said.
On Friday, world stocks sank for an eighth straight session, wiping $2.5 trillion off company values on the week, as concern ballooned over the slowing global economy and the spread of debt anguish into Italy and Spain.
Sri Lanka's main share index fell 1.18 percent in early trade but closed 0.86 percent or 58.49 points weaker at 6,751.29, its lowest since July 29.
"Sentiments of global markets are reflecting through our market also," said a stockbroker on condition of anonymity. "The (earnings) results which came on so far are also not really helping the market as they were not too exciting."
The day's turnover was 1.17 billion Sri Lanka rupees ($10.7 million), well below last year's average of 2.4 billion and this year's 2.65 billion.
Friday's total volume was 61.5 million, lowest since July 28, against five-day average of 85.1 million. The 30-day and 90-day average trading volumes were 83.5 million and 108.4 million, respectively. Last year's daily average was 67.9 million.
Foreign investors were net sellers of 66 million rupees worth of shares on Friday, extending the week's outflow to 546 million rupees and 1.13 billion in the last nine sessions. They have sold 8.79 billion rupees in 2011 after a record outflow of 26.4 billion in 2010.
The bourse is up 1.74 percent so far this year, after being Asia's best performer in 2009 and 2010, gaining 124 percent and 96 percent respectively due to optimism over the economy after the end of a 25-year war in May 2009.
The rupee ended weaker at 109.70/75 a dollar from Thursday's close of 109.66/68 as the central bank raised the trading band by 10 cents to 109.20/80, to match the dollar's strengthening against other major currencies, dealers said.
FACTORS TO WATCH:
- June quarter earnings of listed firms
- If foreign investors buy shares in large volumes
- Extent of the rupee's appreciation
Colombo Stock Exchange:
Stock Market Volume (Shares)
Current Volume Average Volume 30 Days
Yield and Price of Sri Lanka's sovereign bonds:
Maturing year Tenure amount Reuters yield
2012 5-yr $500 mln 2.889-2.484
2014 5-yr $500 mln 3.677-3.388
2020 10-yr $1,000 mln 5.6408-5.5039
2021 10-yr $1,000 mln 5.7414-5.6121
* For Sri Lankan treasury securities benchmarks and data, please click and
* For interbank lending rate or call money rate or
* For secondary market rates, please see <0#LKBMK=>. ($1 = 109.665 Sri Lanka Rupees) (Reporting by Ranga Sirilal; Editing by Bryson Hull)