Sri Lanka stocks close up 2.8-pct

Sept 21, 2010 (LBO) – Sri Lankan shares closed higher Tuesday in trading marked by a change in control of an asset-rich pharamaceutical firm and the first imposiotn of a price band under new rules, brokers said. The All Share Price Index closed at 6,702.99, up 2.8 percent (181.56 points) while the more liquid Milanka index rose 3.4 percent (229.14) to cross the 7,000 point mark and close at 7,055..94, according to stock exchange provisional figures.

Turnover was 6.7 billion rupees.

The ASI is up 98 percent so far this year as improved company earnings, faster economic growth, low inflation and falling interest rates attract funds into stocks.

And maket capitalisation at 2.2 trillion rupees has doubled in the past year

The markets regulator, the Securities and Exchange Commission, imposed a 10 percent price band on Vallibel Finance from September 23 till October 13, the firm said in a stock exchange filing.

A previous blanket 10 percent daily up and down price movment band imposed by the markets regulator on all stocks was lifted Monday and replaced with a new formula on individual shares to curb unusual price volatility.

Vallibel Finance was up 27 percent or 27 rupees to 126 rupees with 1.5 million shares traded, according to provisional figures.

Colombo Pharmacy, whose control changed hands, was the day’s highest gainer, ending 1,335 rupees a share, up 651 rupees or 95 percent.