* Sri Lanka brokers shocked by charges against fund manager

Sri Lankan traders reacted with shock at the weekend to US fraud charges laid against a billionaire Sri Lankan-born hedge fund manager who had big interests in the island's stock market.

The US Justice Department filed insider trading charges against Raj Rajaratnam, who spent his childhood years in Sri Lanka, and five others on Friday following an extensive wiretapping investigation.

Sri Lankan brokers said Raj, founder and head of the New York-based Galleon Management hedge fund, was a major investor in Sri Lanka's small 10-billion-dollar bourse which is among the world's best performing markets.

Rajaratnam and his fellow alleged conspirators were accused of earning 20 million dollars from illegal trading in what US media reports said was the biggest ever hedge fund insider dealing scheme.

He attended primary school in Sri Lanka before going abroad with his parents.

He was reported by the US magazine Forbes to have studied in Britain and the United States before creating the hedge fund, believed to manage at least six billion dollars in assets.




According to public documents, Rajaratnam is the single largest investor in Sri Lanka's biggest quoted firm, John Keells Holdings, a conglomerate with interests from banking to ports and hotels.

John Keells Holding (JKH) - 9.2%

People Merchant Bank (PMB) - 13%

Commercial Bank (COMB) - 3.2%

Figures compiled from the stock exchange showed Rajaratnam also has large holdings in other Sri Lankan blue-chips firms such as Commercial Bank and two brokerage houses either through Galleon or personally.

The billionaire, who is the world's 559th richest person according to Forbes magazine with a net worth of 1.3 billion dollars, had also donated money to local charities.

"It's a setback for the Colombo stock market which was proud to show him off as one of the biggest foreign investors in the country," said a fund manager who also asked not to be named.

Rajaratnam's company released a statement saying it was "shocked to learn" of his arrest and would cooperate fully with US authorities.

* Sri Lankan shares close flat, foreign inflows top Rs1.0bn - Trading Friday - 16 Oct, 2009

Sri Lankan share closed down Friday as the market was taking a slow technical correction, while net foreign inflows had topped one billion rupees.

The All Share Price Index closed down 0.10 percent (3.22 points) to end at 3,131.91, while the Milanka Index of more liquid stocks gained 0.26 percent (9.08 points) to close at 3,546.93, according to provisional stock exchange data.

Turnover was 836.7 million rupees.

There was a net foreign outflow of 10.7 million rupees as foreigners bought 184.3 million rupees worth of shares and sold 195.0 million rupees.

This week end foreign inflows had reached 1.07 billion rupees, one of the weekly highest in the recent past.

Diversified JKH closed flat at 153.00 rupees, down 1.00 on 244,600 shares traded, and Distilleries Company of Sri Lanka closed at 107.50 rupees, down 1.25.

Building and construction sector shares saw active trading. Sierra Cables closed flat at 2.20 rupees with 1.76 million shares traded, and Tokyo Cement non-voting shares closed at 18.00 rupees, up 50 cents with 1.24 million shares changing hands.

Lanka Cement closed at 30.25 rupees, down 25 cents.

National Development Bank closed at 201.00 rupees, up 1.00, and Commercial Bank of Ceylon closed at 190.25 rupees, down 1.75.Sampath Bank closed at 193.00 rupees, down 75 cents, and Seylan Bank closed at 44.75 rupees, down 25 cents.

Dialog Telekom, a unit of Telekom Malaysia closed flat at 7.50 rupees, and fixed line operator Sri Lankan Telecom closed at 46.00 rupees, up 25 cents.

* Sri Lankan shares fall on profit taking - Trading Wednesday - 07 Oct, 2009

Sri Lankan stocks ended a two-week bull-run Wednesday as retail investors took profits from a market that’s heading towards a correction, while John Keells Holdings (JKH) shares were heavily traded today.

The All Share Price Index closed down 0.35 percent (11.00 points) to end at 3,136.56 while the Milanka index of more liquid stocks lost 0.52 percent (18.36 points) to close at 3,529.02, according to provisional stock exchange data.

Turnover reached 1.17 billion rupees.

On Wednesday there was a net foreign inflow of 448.9 million rupees worth of shares today as foreigners bought 534.6 million rupees and slod 85.7 million rupees.

Conglomerate JKH closed at 154.00 rupees, up 2.00 with 2.91 million shares changing hands today, and Distilleries Company of Sri Lanka, unit of unlisted tea company Stassens closed flat at 91.00 rupees.

Nation Lanka Finance, formerly known as Ceylinco Finance Company closed at 29.75 rupees, up 2.00 on 1.15 million shares traded.

Commercial Bank of Ceylon closed at 180.00 rupees, up 25 cents, and Hatton National Bank closed at 170.00 rupees, up 50 cents. National Development Bank closed at 195.00 rupees, down 25 cents, and DFCC Bank closed at 152.50 rupees, down 1.50.

"We can expect a technical correction to come soon," a market analyst said

Dialog Telekom a unit of Telekom Malaysia closed at 8.25 rupees, down 50 cents, and Sri Lanka Telecom 45.75 rupees, down 25 cents.

Retailer favorite Touchwood Investments closed at 93.75 rupees, down 1.00.Tokyo Cement closed at 214.50 rupees, up 2.75.

ACL Cables closed at 79.25 rupees, down 2.25, while Sierra Cables closed at 2.10 rupees, down 10 cents on over 1.3 million shares traded.

* Sri Lankan shares close up; stock values top Rs1,003bn - Trading Tuesday - 06 Oct, 2009

Sri Lankan stocks closed at a new all time high with stock values topping 1,000 billion rupees, and the market up 108.1 percent from the beginning of the year, according to Colombo Stock Exchange data.

The All Share Price Index closed up 0.95 percent (29.32 points) to end at 3,127.56 while the Milanka index of more liquid stocks gained 1.10 percent (38.61 points) to close at 3,547.09, according to provisional stock exchange data.

Market capitalization at the end of the day was 1003.1 billion rupees, the first time stock values had topped 1000 billion rupees.

Prime minister Ratnasiri Wickremanayake made a surprise visit to the trading floor, soon after.

Turnover was 1.18 billion rupees.

There was a net foreign inflow of 82.5 million rupees worth of shares today as foreigners bought 146.5 million rupees and slod 64.0 million rupees.

Dialog Telekom, an index heavy celco closed 8.75 rupees, up 50 cents, with 15 million shares traded, while fixed line operator Sri Lanka Telecom closed at 46.00 rupees, down 25 cents.

Conglomerate John Keells Holdings (JKH) closed at 152.00 rupees, down 2.00, Distilleries Company of Sri Lanka closed at 91.00 rupees, up 25 cents, and Hayleys an export heavy diversified group, closed at 160.00 rupees, up 5.00.

Commercial Bank of Ceylon closed at 179.75 rupees, up 50 cents, National Development Bank closed at 195.25 rupees, up 2.75, Sampath Bank closed at 183.50 rupees, up 1.50, DFCC Bank closed at 154.00 rupees, up 1.00.Nations Trust Bank closed at 34.00 rupees, down 25 cents on 422,300 shares changing hands.

Tokyo Cement closed up 211.75 rupees, up 3.00. Lanka Ventures closed at 14.50 rupees, down 25 cents.

Diversified Richard Pieris and Company closed 40.50 rupees, down 50 cents, while Riverina Hotels closed at 66.00 rupees, down 2.00.

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.

Sri Lanka stocks hit new high ASPI - Trading Friday - 02 Oct, 2009

Sri Lankan shares closed at a record high Friday, as investors expecting the bull run to continue on the short term with periodical profit taking, while upcoming quarterly results will point at the bourses long term direction.

The All Share Price Index (ASPI) was up 0.68 percent (20.41 points) to end at 3,018.01 while Milanka index liquid stocks gained 1.25 percent (42.00 points) to close at 3,394.86, according to provisional stock exchange figures.

Turnover was 1.07 billion rupees, with a year-to-date turnover of 89.2 billion rupees, the stock exchange said.

The ASPI has shot up 100.8 percent this year, while the Milanka is up 108.1 percent, a stock exchange statement said.

On Friday there was net foreign outflows worth 33.0 million rupees, with foreign investors buying 199.0 million worth shares and selling shares valued at 232.0 million rupees.

According to Bloomberg Newswire the Colombo Stock Exchange is the best performing market in Asia and the fourth best performing index in the world, the exchange said.

Today is a day that goes down in history with the ASPI reaching 3,018 points and a market capitalization of 967 billion rupees reflecting the positive attitude of investors.

Index heavy conglomerate John Keells Holdings (JKH) closed at 154.00 rupees, up 1.00, while Distilleries Company of Sri Lanka closed at 89.25 rupees, up 2.25.

Seylan Merchant Bank 18 million non-voting shares changed hands. It closed at 80 cents, up 10 cents.

Commercial Bank of Ceylon closed at 176.25 rupees, up 2.25, while National Development Bank closed at 190.75 rupees, down 1.00.Sampath Bank closed at 179.50 rupees, up 8.50, while DFCC Bank closed at 153.00 rupees, up 1.00.

Nestles Lanka, a unit of Swiss based food company Nestles closed at 411.50 rupees, up 1.75, while Ceylon Tobacco, Sri Lankan unit of British American Tobacco closed at 185.00 rupees, up 2.50.

Celco Dialog Telekom, the Sri Lankan unit of Telekom Malaysia closed at 7.00 rupees, up 25 cents, while Sri Lanka Telecom closed 45.00 rupees, down 50 cents.

* Sri Lankan shares close up 0.87-pct - Trading Wednesday - 30 Sep, 2009

Sri Lankan shares closed up Wednesday in an end-quarter rally with buyers chasing plantation sector stocks, and hotel stock extending gains.

The All Share Price Index was up 0.87 percent (25.39 points) to end at 2,938.64 while Milanka index liquid stocks gained 1.15 percent (37.47 points) to close at 3,297.43, according to provisional stock exchange figures.

Turnover was 1.24 billion rupees, with large volumes deals in Seylan Bank non-voting shares.

On Wednesday there was net foreign inflows worth 38.7 million rupees, with foreign investors buying 131.7 million worth shares and selling shares valued at 93.0 million rupees

Index heavy conglomerate John Keells Holdings (JKH) closed at 151.00 rupees, up 25 cents, while Distilleries Company of Sri Lanka closed at 85.00 rupees, down 1.25.

Kahawatte Planations closed at 34.75 rupees, up 4.75, while Coco Lanka closed at 42.00 rupees, up 4.00.Kelani Valley Plantations closed at 56.00 rupees, up 2.00, while Malwatte Valley Plantations closed at 31.50 rupees, up 1.25.

Maskeliya Plantations closed at 21.75 rupees, up 2.50, while Talawakelle Tea Estates closed at 27.75 rupees, 2.00.

Carsons Cumberbatch, which controls several oil palm firms, closed at 289.25 rupees, up 13.25.

Aitken Spence Hotel Holdings closed at 219.75 rupees, up 7.75, while Asian Hotels and Properties closed at 75.00 rupees, up 1.00.Confifi Hotel Holdings closed at 138.00 rupees, up 2.00, while Nuwara Eliya Hotels Company closed at 400.00 rupees, up 17.50 on thin volumes.


Commercial Bank of Ceylon closed at 171.25 rupees, down 75 cents, while National Development Bank closed flat at 189.75 rupees.Sampath Bank closed at 170.00 rupees, up 25 cents, while DFCC Bank closed at 151.00 rupees, flat.

Celco Dialog Telekom, the Sri Lankan unit of Telekom Malaysia closed at 6.50 rupees, up 25 cents, while Sri Lanka Telecom closed flat 44.75 rupees.

Tokyo Cement closed at 192.00 rupees, up 4.50.