Sri Lankan shares recover, rupee flat

May 26, 2009 (LBO) – Sri Lankan stocks ended up Tuesday, as investors were bullish on blue chips and hotel stocks, while the rupee was flat against the greenback and traded at 114.90/95 levels, broker and traders said. Dialog Telekom, Sri Lanka’s largest celco is a fully owned subsidiary of Telekom Malaysia.

Development Finance Corporation of Ceylon gained 2.00 rupees to close at 114.75, while Sri Lanka’s largest privately held bank, Commercial Bank of Ceylon, gained 50 cents to close at 116.00.

Hunas Falls Hotels gained 2.00 rupees to close at 37.75 on thin trade volumes, while Mahaweli Reach Hotel lost 50 cents to close at 17.50.

Foreign buying was at 340.0 million rupees, while foreign selling amounted to 405.0 million rupees, resulting in a net outflow flow of 65.0 million rupees.

The All Share Price Index gained 0.93 percent (19.78 points) to end at 2,140.41 while the more liquid Milanka was up 0.75 percent (18.12 points) to close at 2,441.88, according to provisional stock exchange figures.

Turnover was 919.6 million rupees.

“After yesterday’s profit taking investors turned towards attractive blue chips and hotel stocks,” said Geeth Balasuriya of Acuity Stockbrokers.

“Investors are using the current discounted prices to make gains in the possible future revival of the tourism sector.”

Aitken Spence Hotel Holdings which owns star class hotels like Kandalama and The Tea Factory and high-end resorts in the Maldivian Islands, gained 1.00 rupee to close at 130.00.

Eden Hotel Lanka which was heavily traded gained 1.00 rupee to close at 17.75, while Confifi Hotel Holdings gained 3.50 rupees to close at 94.50.

Browns Beach Hotels gained 2.75 to close at 36.75.

“Institutional, high net worth and retail investors were actively trading today,” said Balasuriya.

Conglomerate John Keells Holdings which has business interest in transport, finance, retail, food processing and property development sectors, and was heavily traded, gained 2.00 rupees to close at 111.75.

Brokers said 26.7 million Dialog Telekom shares changed hands at 5.50 rupees, the price at which it closed.