Sri Lankan shares CSE hit fresh record high on Monday

Sri Lanka stocks at fresh peak after doubling in 2009, led by local investor-buying of blue chips in the first trading day of the year, after being one of the world's best performing bourse in 2009.

The All-Share Price Index .CSE of the Colombo Stock Exchange climbed to 3,490.56 points by midday, surpassing its previous peak of 3,390.31 hit on Dec. 30. It closed 96.09 points or 2.84 percent firmer at a record closing high of 3,481.64.

"Investors are expecting a boom in the market this year," said Harsha Fernando, CEO at SC Securities in Colombo.

The bourse was closed on Friday for a special new year holiday and Monday is the first trading day in 2010.

Sri Lanka's stock exchange was one of the world's best performing markets in 2009, jumping 125.2 percent on optimism that the end of the country's long civil war in May would bring in a flood of badly needed foreign investment.

It has outpaced the benchmark emerging market equities index .MSCIEF, which rose 74.8 percent in 2009.

Low interest rates and slowing inflation have also fuelled foreign investor interest.

Source - COLOMBO, Jan 4 (Reuters)

Sri Lankan shares rose to a two-month high

S.Lanka stocks at 2-month high as Keells rise, The All-Share Price Index .CSE of the Colombo Stock Exchange closed 12.49 points firmer at 3,089.45, its highest close since Oct. 16.

Top conglomerate John Keells Holdings closed 0.63 percent to a new over two-year high of 160.25 rupees a share.

"A new U.S. based fund bought Keells shares and the sellers were institutional," an analyst said on condition of anonymity.

Keells accounted for over 88 percent of the day's turnover of 5.3 billion rupees ($46.2 million), its highest since July 28, last year. The daily average in 2008 was 464 million rupees. Net foreign buying hit 2.36 billion rupees, mainly from Keells trade.

Analysts said the foreign buying in the past few days has improved investor confidence, which had been declining since the government announced an early national election next year.

Sri Lanka's presidential election is scheduled for Jan. 26 and it will be followed by parliamentary election due by April.

Sri Lanka's stocks closed 1.65 percent lower Nov 05, 2009

Sri Lanka's stock index .CSE fell 1.65 percent to its lowest close in nearly 2 months on Thursday, as economic woes and trade union protests ahead of national polls rattled investor confidence. The benchmark Colombo All Share Index closed down 47.88 points lower at 2,954 and the Milanka Index of liquid stocks fell 1.06 percent (34.33 points) to 3,207.7 points according to the provisional Colombo Stock Exchange data.

The bourse has fallen 8.83 percent after the government said on Oct. 13 it will hold national polls by April.

Frequent protests and trade union actions have dampened investor confidence, which had been already on the decline on worries of political uncertainty ahead of national polls.

Investors are also wary of a likely loss of an EU trade concession.

A correction in the index was expected after the market doubled so far this year and became the second best performing market in the world with the benchmark index topping 3,000 points to an all time high.

Sri Lanka's economy was hit by excessive government spending, triggered high inflation, and high interest rates in the midst of a global downturn.

Diversified John Keells Holdings closed down 4.00 rupees at 4.00. Aitken Spence Hotel Holding close flat at 215.00 rupees, Commercial Bank of Ceylon closed at 167.50 up 50 cents.