Saturday, April 9, 2011

Sri Lanka stx at 1-mo high; holiday hits volumes; rupee weaker

* Foreign inflows for seventh session

* Inflation worries; credit shortage hurt sentiment

* Rupee weaker on importer dollar demand


COLOMBO, April 8 (Reuters) - Sri Lanka's stock market rose to a one-month high on Friday on retail buying, as the impending long new year holiday next week kept volumes low.

The island's main share index closed 0.48 percent or 35.14 points firmer at 7,413.87, Highest since March 8. It hit a record closing high of 7,811.82 on Feb 14.

The Stock Exchange declared April 15 a special holiday to mark the traditional New Year which falls on April 13 and 14.

Foreign investors were net buyers of shares worth 33.7 million rupees on Friday, extending the total inflow to 1.2 billion rupees in the last seven sessions. But they have sold a net 6.6 billion in 2011, and a record 26.4 billion in 2010.

The day's turnover was at 1.6 billion Sri Lanka rupees ($14.5 million), less than last year's average of 2.4 billion rupees and well below this year's daily average is 3.1 billion rupees.

The bourse is still Asia's best performer in 2011 with an 11.7 percent gain, after bringing in the region's top return, 96 percent, last year.

Traded volume was 30.4 million, against a five-day average of 43 million shares. The 30-day and 90-day average trading volumes were 62.1 million and 68 million, respectively. Last year's daily average volume was 67.9 million.

The bourse is trading at a forward price-to-earnings (P/E)ratio of 15.4, one of the highest among emerging markets, compared with an average 12.7 in Asian markets and 11.9 for global emerging markets, Thomson Reuters StarMine data showed.

The rupee closed weaker at 110.38/40 a dollar from Thursday's close of 110.34/37 on importer dollar demand ahead of the festivals, dealers said.

FACTORS TO WATCH:

- If central bank will tighten its monetary policy to curb high inflationary expectations

- Impact of the ongoing Middle East/North Africa turmoil on stocks and the rupee

- March-quarter corporate results

source - in.reuters.com

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