By Shihar Aneez
COLOMBO, Jan 11 (Reuters) – Sri Lankan shares .CSE hit a new record high on Monday, led by high local trade in the tourism, plantation, and motor sectors.
The All-Share Price Index .CSE of the Colombo Stock Exchange rose 0.99 percent or 34.64 points to its all-time high 3549.27 during the trade, surpassing the previous record of 3545.56 hit on Wednesday.
It closed 0.03 percent or 1.15 points firmer at 3515.78 due to profit-taking on blue chips.
“Shares are overheated to a greater extent,” said Prashan Fernando, executive director at Acuity Stockbrokers. “Foreign trade has been a net outflow and local investors do not have any options for investments due to low interest rates.”
Foreign trade has recorded a net outflow of 604.7 million rupees so far for the year. Foreign investors sold a net 785.3 million rupees worth of stocks in 2009, compared to a record net foreign inflow of 13.9 billion in 2008.
The sector indices for hotel and travel .CSEHT, motors .CSEMT, and plantations .CSEPL all hit record highs on hopes of high tourist arrivals, an import tax cut for motor vehicles, and rising world oil prices respectively, analysts said.
Aitken Spence Hotel Holdings AHUN.CM jumped 16.03 percent to 343.75 rupees, while shares in John Keells Hotels KHL.CM rose 1.9 percent to 26.75 rupees.
As seen on Reuters India on 11 January 2010
Media Release – 12 January 2010