September 13, 2012 / 11:22 AM / 5 years ago

Sri Lanka bourse climbs to 8-month high

COLOMBO, Sept 13 (Reuters) - Sri Lanka’s stock market jumped nearly 2 percent on Thursday to its highest level in nearly eight months, led by banks and diversified shares bought by institutional and foreign investors.

The Colombo Stock Exchange’s main index jumped 1.92 percent or 108.92 points, to 5,777.22, its highest close since Jan 20. The rise helped boost market capitalisation by 41.68 billion rupees.

“Sellers are on the sidelines, because the market is moving up,” a stockbroker said on condition of anonymity.

“But the market is long overdue for a correction. Things can go on the boil too much and it’s not good for the market. You need a correction.”

The index has risen 15.2 percent in the last 13 sessions on hopes that the new Securities and Exchange Commission head, Nalaka Godahewa, will produce ideas to revive the market, down 4.89 percent since the beginning of the year.

Turnover on Thursday was 1.93 billion rupees ($14.63 million) compared with this year’s daily average of 894.9 million rupees.

The bourse saw a net foreign inflow of 155.2 million rupees worth of shares, extending the net inflow this year to 29.2 billion rupees.

The rupee was trading 131.98/132.05 at 1045 GMT, from Wednesday’s close of 131.95/132.00. Dealers said the rupee gained early in the day, trading around 131.70 due to dollar sales by a bank, before falling back, dealers said. ($1 = 131.9000 Sri Lanka rupees) (Reporting by Ranga Sirilal and Shihar Aneez; Editing by Ron Popeski)

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