Sri Lanka shares soar to record high, foreigners sell - Trading Monday - 05 Oct, 2009

Sri Lankan shares closed at a record high Monday with foreign investors being net sellers.

The All Share Price Index (ASPI) was up 2.66 percent (80.23 points) to end at 3,098.24 while the Milanka index of more liquid stocks gained 3.36 percent (113.91 points) to close at 3,508.77, according to provisional stock exchange figures.

The total market turnover for the day was 1.06 billion rupees.

There was a net foreign outflow of 92.2 million rupees worth of shares today as foreigners sold 230.4 million rupees and bought 138.2 million rupees.

The market broke the previous intra-trade record of 3038.48 points achieved on February 19, 2007 as certain foreign institutional funds bought heavily into blue chips.

Dialog Telekom attracted a lot of attention at both, retail and institutional levels.

Dialog Telekom 11.5 million shares changed hands. It closed at 8.50 rupees, up 1.50, while fixed line operator Sri Lanka Telecom closed 46.25 rupees, up 1.25.

Analysts said the small nature of the market with a turnover of around 10 million dollars made it easy for big investors to move the market.

"Certain specific shares are being pushed up by speculators," said an analyst.

Some of them were believed to be Sri Lankan investors with foreign accounts.

Index heavy conglomerate John Keells Holdings (JKH) closed flat at 154.00 rupees, while Distilleries Company of Sri Lanka closed at 91.00 rupees, up 1.75.

Commercial Bank of Ceylon closed at 179.00 rupees, up 2.75, while National Development Bank closed at 192.50 rupees, up 1.75.Sampath Bank closed at 182.25 rupees, up 2.75, while DFCC Bank closed flat at 153.00 rupees.

Chevron Lubricants Lanka Limited closed at 179.50 rupees, up 14.50, while Ceylon Tobacco Company, the Sri Lankan unit of British American Tobacco closed at 183.00 rupees, down 2.00.