Sri Lanka shares end higher

July 14, 2008 (LBO) – Sri Lankan share prices ended higher Monday with gains in heavyweight Sri Lanka Telecom and John Keells Holdings pushing up the indices. Brokers said a slight recovery anticipated this week would offer profit taking opportunities for investors who bought during the downturn.

The All Share Price Index ended up 0.80 percent (19.44 points) at 2,444.86 while the more liquid Milanka closed 0.82 percent (23.86 points) higher at 2,944.84. Turnover was 114 rupees.

Sri Lanka Telecom rose 2.84 percent (1.25 rupees) to 45.25 rupees with 34,100 shares traded while JKH was up 75 cents to 108 rupees with 104,200 shares traded. Dialog Telekom was flat at 14.

Hatton National Bank ended up just over one percent (50 cents) at 48.25 rupees and Associated Motorways was up five percent (8.25 rupees) to 172 rupees with 155,600 shares changing hands.

Bartleets Mallory Stockbrokers said in a report the bourse is undergoing a recovery after consecutive falls in the beginning of July.

The ASPI at 2350 is seen as a strong support level, it said.

“Since 2007 ASPI reached 2350 levels in three different time periods and every time it reached 2350 the market has recovered successfully,” the brokers said.

Foreigners were more prominent on the buying side last week bringing a net weekly inflow of 38.3 million rupees.

“BMS research believes that the positive momentum would spill over through the coming week, which invariably should give an attractive profit taking opportunity for those investors who capitalised on the market weakness.”