October 26, 2010 / 12:01 PM / 8 years ago

Sri Lanka shares fall for second day ahead of IPOs

 * Investors cash in to fund IPO purchases
 * Foreign investors buy 89 mln rupees' of shares
 * Rupee currency closes flat
 COLOMBO, Oct 26 (Reuters) - Sri Lanka's benchmark share
index fell 1.3 percent on Tuesday for a second day as investors
cashed in to raise money for upcoming initial public offerings
and booked year-end profits, analysts said.
 Sri Lanka's main share index .CSE fell 87.17 points or
1.31 percent to 6546.16. It is still Asia's best performer in
2010 with a 93.4 percent gain as the island's economy rebuilds
after the end of a civil war in May 2009.
 It has shed 9.2 percent since hitting an all-time high of
7,207.75 on Oct 4. Foreign investors were net buyers of 89
million rupees worth' of shares but this year still have sold a
net 22.9 billion rupees' worth.
 The bourse is trading at the highest forward
price-to-earnings ratio in Asia and global emerging markets at
20.1 times, compared with 13.6 and 12.8 respectively, Thomson
Reuters data shows. The CSE's 14-day relative strength index is
at 53.3, between the neutral limits of 30 and 70.
 The diversified sector led the fall with conglomerate John
Keells Holdings JKH.CM losing 2.02 percent to close at 295.9
rupees. Banking shares also fell, with top lender Commercial
Bank COMB.CM shedding 1.92 percent to move to 260 rupees.
 Turnover was 11.2 billion rupees ($100.7 million), nearly
19 times the 2009 daily average and well above this year's
daily average of 2.4 billion.
 The rupee LKR= closed flat at 111.70/72 a dollar from
Thursday's close.
 - Whether commercial banks will cut lending rates as the
central bank kept policy rates steady at multi-year lows
 - Whether state funds will continue pushing up the index
 - Performance shown in September quarter earnings
 Colombo Stock Exchange:
 Stock Market Volume (Shares)
 Current Volume            Average Volume 90 Days       
79,660,925                        83,214,128
 Yield and Price of Sri Lanka's sovereign bonds:
          Maturing year   Tenure    amount      Reuters
yield LK032736246=     2012       5-yr    $500 mln    
3.400-3.090 LK045930114=     2014       5-yr    $500 mln    
4.452-4.298 85227SAH9=RRPS   2020      10-yr  $1,000 mln   
 *  For Sri Lankan treasury securities benchmarks and data,
please click LKBMK= and LKCMTBMK=
 * For interbank lending rate or call money rate CLIBOR or
 * For secondary market rates, please see <0#LKBMK=>.
 ($1=111.71 Sri Lankan rupees)
 (Reporting by Ranga Sirilal; Editing by Bryson Hull)

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