Tuesday, May 10, 2011

Sri Lanka bourse at 2-wk high with foreign buying; rupee flat

* Large cap diversified, oil palm shares boost index
* Foreign investors buy for 5th straight session
* Rupee flat; state bank sells dlr at 109.80 rupees - dealers

COLOMBO, May 9 (Reuters) - Sri Lankan shares closed firmer on Monday to a two-week closing high on buying in large-cap diversified and oil palm shares that were beaten in the last few sessions, while the rupee closed steady.

Sri Lanka's main share index rose 0.8 percent or 58.71 points to 7,377.86 to its highest close since April 21.
Market heavyweight and the largest diversified conglomerate John Keells Holdings rose 2.23 percent. Listed oil palm firm Bukit Darah jumped 5.8 percent and conglomerate Carson Cumberbatch closed 3.13 percent firmer, both in thin volume.

Foreign investors were net buyers for the fifth straight session, buying 52.8 million rupees' worth of shares on Monday. They have sold a net 5.72 billion in 2011, and a record 26.4 billion in 2010.

Turnover was 1.62 billion Sri Lanka rupees ($14.8 million), well below last year's average of 2.4 billion rupees and this year's daily average of 2.87 billion rupees.

Traded volume was 83.7 million, against a five-day average of 62.4 million. The 30-day and 90-day average trading volumes were 56.1 million and 63.9 million, respectively. Last year's daily average volume was 67.9 million.

The bourse is still Asia's best performer in 2011 with an 11.2 percent gain, after bringing in the region's top gain, 96 percent, last year.

The rupee ended steady at 109.75/80 a dollar as a state bank, through which the central bank directs the market, sold dollar at 109.80 rupees despite easing pressure in the dollar globally, dealers said.

FACTORS TO WATCH:
- The extent of the rupee rise the central bank will allow
- Impact of global commodity price volatility on Sri Lankan bourse
- If Sri Lanka can achieve an 8.5 pct growth target amid rising global oil prices and inflation
- March quarter corporate results

source - www.reuters.com

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