Bourse up on large caps; Budget awaited

Friday, 12 November 2010 23:53 -     - {{hitsCtrl.values.hits}}

Reuters: Sri Lanka’s benchmark share index rose on Friday for the second straight session led by large caps battered in the recent fall, amid thin volumes caused by low liquidity and a credit shortage.  

Sri Lanka’s main share index rose 30.45 points or 0.46 percent to 6,600.06. It is Asia’s best performer in 2010 with a 95 per cent gain. It fell 2.4 percent in six sessions through Wednesday.  

Large caps Bukit Darah and Nestle Lanka gained 2.7 per cent and 4.5 per cent respectively. The bourse is trading at the highest forward price-to-earnings ratio in Asia and global emerging markets at 20.2 times, compared with 13.8 and 13.0 respectively, Thomson Reuters StarMine data showed. The CSE’s 14-day relative strength index is at 47.6, between the neutral limit of 30-70.

Foreign investors have sold a net Rs. 25.8 billion in shares this year, and on Friday sold a net Rs. 13.3 million. Turnover was Rs. 648.1 million ($5.8 million), slightly above the 2009 daily average of Rs. 593.6 million, but well below year to date daily average of 2.45 billion.  

The rupee closed weaker at 111.69/70 rupees a dollar from Thursday’s close of 111.58/60 due to dollar demand from importers, currency dealers said.