Shares at 1-week highs amid foreign outflow; rupee up

Saturday, 14 May 2011 00:28 - - {{hitsCtrl.values.hits}}

COLOMBO (Reuters) - Sri Lankan shares rose on Friday for a second session led by large cap oil palms shares like Bukit Darah amid foreign outflows, while the rupee edged up on bank dollar sales.

Sri Lanka's main share index closed 0.26 percent or 19.12 points up to 7,319.94, its highest close since 6 May.

Bukit Darah ended 2.87 percent firmer in thin trade.

Despite the rise, analysts said investors were still in a selling mood due to upcoming initial public offerings and a Securities and Exchange Commission directive to stop margin trading by June 30. Foreign investors were net sellers with an outflow of 12.5 million rupees' worth of shares on Friday, extending the week's outflow to 60.3 million rupees. They have sold a net 5.83 billion in 2011, and a record 26.4 billion in 2010.

Turnover was 1.63 billion Sri Lanka rupees ($14.9 million), below last year's average of 2.4 billion rupees and this year's daily average of 2.81 billion rupees.

Traded volume was 78.1 million, against a five-day average of 77.7 million. The 30-day and 90-day average trading volumes were 56.5 million and 64.9 million, respectively. Last year's daily average volume was 67.9 million.

The bourse is still Asia's best performer in 2011 with a 10.3 percent gain, after bringing in the region's top return of 96 percent last year.

The rupee narrowly shaved to close up at 109.76/78 a dollar from Thursday's close of 109.78/80 on banks' dollar sales , dealers said.