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Sri Lanka shares rebound, trading thin

Oct 13, 2008 (LBO) - Sri Lankan shares rebounded Monday, lifted by blue chips, on a temporary recovery of confidence as global bailout plans saw overseas markets turning around, but trading remained thin, brokers said.
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Dialog Telekom rising 7.14 percent (50 cents) to 7.50 rupees while Sri Lanka Telecom went up 3.
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21 percent (1.25 rupees) to 40.25 rupees.

John Keells Holdings ended up 75 cents at 76 rupees.

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

Bartleet Mallory Stockbrokers said that in Monday's trading foreigners were heavier on the selling side bringing the net outflow to 7.

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17 million rupees.

Overall activity proved to be "modest" with a mere 4.

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35 million shares changing hands, the brokers said in their market report.

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The All Share Price Index went up 3.06 percent (58.89 points) to 1,983.58 while the Milanka rose 3.26 percent (69.19 points) to 2,194.59. Turnover was 97 million rupees.

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"The market is up across the board mainly on confidence, although turnover is not that great," said Mohan Thangarajah of First Guardian Equities.

"The confidence retuning to global markets also filtered down to Sri Lanka."

Asian markets recovered following news of the huge bank bailouts in Europe which followed similar action in the United States.

"It looks as if at least temporarily all the bad news has been contained," said Thangarajah.

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"Also, the market is oversold."

The Colombo stock exchange indices were lifted by gains in blue chips.

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