Thursday, April 7, 2011

Sri Lanka stx slip on pre-holiday volumes; rupee flat

* Foreign inflows for fifth session

* Inflation worries; credit shortage hurt sentiment

* Rupee flat for 10th straight session


COLOMBO, April 6 (Reuters) - Sri Lanka's stock market slipped on Wednesday in thin trading volume as investors stayed on the sideline ahead of a long new year holiday next week, but offshore investors bought in for a fifth straight session.

The island's main share index closed 0.14 percent or 10.12 points weaker at 7,359.90, lowest since March 31. It hit a record closing high of 7,811.82 on Feb 14.

Foreign investors were net buyers of shares worth 56.1 million rupees on Wednesday, extending the total inflow to 1.1 billion rupees in the last five sessions. But they have sold a net 6.7 billion in 2011, and a record 26.4 billion in 2010.

The day's turnover was at 1.5 billion rupees ($13.6 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 10.9 percent gain, after bringing in the region's top return, 96 percent, last year.

Traded volume was 38.5 million, against a five-day average of 57.8 million shares. The 30-day and 90-day average trading volumes were 63.5 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 12.5 in Asian markets and 11.9 for global emerging markets, Thomson Reuters StarMine data showed.

The rupee closed flat at 110.38/40 a dollar as a state bank bought up dollars amid heavy importer demand, 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 rupee

- March-quarter corporate results

source - www.reuters.com

No comments: