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Thursday, May 06, 2010 - 6.45 GMT |
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CSE hits record again |
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The Colombo Stock Exchange hit a new record yesterday (05 May) with the All-Share Price Index rising 1.3% of 4,260.11 points, surpassing its previous all-time high of 4,246.08 hit on Monday. It closed 0.34 percent firmer at 4,219.76.
Analysts say that shares hit a new record let by telecoms on a possible rise in tariffs and earnings hopes. Sri Lanka Telecom SLTL.CM closed 2.7 percent firmer at 38 rupees.
"The expected new tariff is expected to boost revenue in telecom firms," said Jaliya Wijeratne, institutional sales director at SMB Securities.
But foreign investors were net sellers as the International Monetary Fund urged for reforms to continue its $2.6 billion loan.
The bourse is up 24.6 percent so far this year, making it Asia's best-performing market.
Traders expect the market to move up further on heavy retail buying, with hopes of better earnings, post-war economic development and foreign direct investment under the newly elected stable government despite a delay in the budget, Reuters reported.
Heavy retail buying has driven the bourse's price-to-earning ratio to 20.76, bourse data showed, compared with around 11 percent a year ago when Sri Lanka ended a 25 years of terrorism last May.
Traders said low interest rates kept turnover up. The day's turnover was 2.8 billion rupees, more than four times the 2009 average of 593.6 million rupees.
The market has shot up over 184 percent since it hit a four-year low on Dec. 30, 2008, rising in anticipation of the end of the war.
Foreign investors sold a net 374 million rupees ($3.3 million) in shares on Wednesday, data showed. They have sold a net of around $144.5 million worth of shares so far this year.
The interbank lending rate or call money rate CLIBOR fell to 9.034 from Tuesday's 9.041 percent.
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