Sri Lanka bourse at new high

The island nations stock markets pulled off a surprise today. Shares hit a record high on Monday on high turnover as investors bought on better earning hopes and select shares of biggest private lender Commercial Bank of Ceylon,traders said. The All-Share Price Index of the Colombo Stock Exchange surged 1.4 percent to hit a new hellip;

The island nations stock markets pulled off a surprise today. Shares hit a record high on Monday on high turnover as investors bought on better earning hopes and select shares of biggest private lender Commercial Bank of Ceylon,traders said.

The All-Share Price Index of the Colombo Stock Exchange surged 1.4 percent to hit a new record high of 4,246.08 points,surpassing its previous all-time high of 4,197.22 hit on Apr. 30.

It closed 30.34 points or 0.72 percent up at 4,219.22.

Lots of things are turning in to very positive territory,so investors are buying in for future,said Harsha Fernado,chief executive at SC Securities in Colombo,adding the market will see a correction.

Analysts said heavy retail buying has driven the bourse8217;s price-to-earning ratio to over 20 now since the end of the civil war in May last year.

Foreign investors bough a net 286 million rupees8217; worth of shares,data showed. They have sold a net of around 16.2 billion rupees8217; 142.5 million worth of shares so far this year.

They sold a net 789 million rupees last year and were net sellers for the first time since 2001.

Sri Lanka will introduce fiscal reforms including tax changes in its 2011 budget,not in this year8217;s as had previously been pledged,the island nation8217;s treasury secretary said on Thursday.

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President Mahinda Rajapaksa will authorise three months of expenditure until July 22,and then a mini-budget will be adopted for the rest of 2010,Treasury Secretary P.B. Jayasundera said.

Traders said the market would continue to move up with hopes of better earnings,post-war economic development and foreign direct investments under the newly elected stable government despite delay in the budget.

Investors had been expecting the government to come up with long-needed fiscal reforms to improve the investment climate. For Sri Lanka8217;s key political risks,see

Traders said low interest rates kept turnover up.

The day8217;s turnover was 3.3 billion rupees 28.7 million,well above the 2009 average of 593.6 million rupees.

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Oil palm share,conglomerate Bukit Darah jumped 10 percent to 4,812.50 rupees a share while shares in conglomerate John Keells Holdings rose 3 percent to 191 rupees.

Shares in biggest listed lender Commercial bank of Ceylon closed 0.21 percent firmer at 240 rupees a share.

The bourse is up 24.6 percent so far this year,making it Asia8217;s best-performing market.

The market has shot up over 182 percent since it hit a four-year low on Dec. 30,2008,rising in anticipation of the end of a 25-year civil war. That came in May and then an IMF loan in July helped boost investor confidence.

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The rupee currency closed firmer at 113.60/113.70 per dollar from Friday8217;s close of 113.93/113.70 as exporter dollar conversions and inflows related to stock market transactions,currency dealers said.

The interbank lending rate or call money rate rose to 9.050 from Friday8217;s 9.025 percent.

1=113.65 Sri Lankan rupees