Sri Lanka shares rise again, but Q3 earnings seen crucial

Oct 15, 2008 (LBO) – Sri Lankan shares rose again Wednesday, regaining some ground lost in last week’s plunge but brokers said the recovery’s sustainability would depend on quarterly earnings.

The Colombo bourse had fallen heavily last week, as other markets crashed.

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The All Share Price Index went up 2.21 percent (43.93 points) to 2,027.51 while the Milanka rose 2.99 percent (65.66 points) to 2,260.25. Turnover was 139 million rupees.

The market was closed on Tuesday because of a religious holiday.

“Most counters were oversold because of last week’s drop so today’s rise was a correction but the trading volumes were thin,” said Nikita Tissera of SC Securities.

“The acid test would be the third quarter earnings. We need to see how resilient the companies have been with rising energy and finance costs which would indicate the direction in the market.”

Dialog Telekom went up 50 cents to close at eight rupees and was the second most actively traded stock with almost half-a-million shares done

Commercial Bank ended up 5.22 percent or 4.75 rupees at 95.75 rupees while Maskeliya Plantations, the most actively traded stock, rose 7.69 percent or two rupees to 28 rupees.

John Keells Holdings lost 50 cents to close at 75.50 rupees