Sri Lanka stocks close up

Oct 28, 2009 (LBO) – Sri Lanka stocks closed up 0.2 percent, reversing a losing streak, with hotel stocks among the gainers, a day after the country’s president ordered a lending rate cut in state banks, brokers said.

Commercial Bank closed at 179.75 up 0.50 while HNB fell 2.75 to close at 165.0

At Wednesday’s Treasuries auction the 3-month bill yield fell 60 basis points to 8.50 percent, the 6-month yield fell 41 basis points to 9.35 percent and the 12-month yield fell 34 basis points to 9.88 percent. The benchmark Colombo All Share Index close up 0.29 percent (8.65 points) at 3,005.7 and the Milanka Index of liquid stocks closed down 0.1 percent (-4.93 points) at 3,372.6 points.

Hotel and travel sector stocks were among the gainers. Sri Lanka’s president Mahinda Rajapaksa ordered state banks to give new loans to hotel projects at rates of around 8.0 to 12.0 percent.

Asian Hotels and Properties closed at 77.0 rupees up2.0, Aitken Spence Hotels at 230.0 up 1.75, Galadari 16.0 up 0.25, Mahaweli Reach 19.00 up 0.25, Ruhunu Hotels, 13.0 up 0.25.

Royal Palm closed at 63.00 up 6.00, Hotel Sigiriya closed at 54.00 up 2.25, Serendib Hotels closed at 59.0 up 1.50, while Connaisance lost 2.00 rupees to close at 48.00 and
Hunas Hotels closed at 50.25.

Index heavy diversified firm John Keells Holdings closed at 144.0 up 2.25, Sri Lanka Telecom 44.75 up 0.75, Dialog closed flat at 7.50.