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Sri Lanka shares sustain gains

Officials from K. Seeds Investments Pvt Ltd (at left) with officials from Commercial Credit and Finance PLC (at right)

Oct 30, 2008 (LBO) - Sri Lankan shares ended higher for the second day running with brokers saying the rise on larger trading volumes may indicate improved investor sentiment and that the slide may have bottomed out.

LIOC ended up 3.41 percent or 0.75 rupees at 22.75 rupees with 233,000 shares changing hands.

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The All Share Price Index went up 2.11 percent (36.92 points) to 1,786.18 while the Milanka rose 2.09 percent (40.97 points) to 1,998.24. Turnover was 251.9 million rupees.

"Investors appear to believe there's support at these levels following the notable transactions on Wednesday," said Nikita Tissera of SC Securities.

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He said trading volumes were healthier.


"We've had a rise in the market on these volumes after some time."

He said there was interest in certain stocks like Lanka IOC on expectations of higher earnings following the sharp fall in crude oil prices, although fears of new government taxes on the firm were holding the share back.

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