Sri Lanka bourse up on large caps; budget awaited

COLOMBO, Nov 12 (Reuters) - Sri Lanka's benchmark share index rose on Friday for the second straight session led by large caps battered in the recent fall, amid thin volumes caused by low liquidity and a credit shortage. Sri Lanka's main share index rose 30.45 points or 0.46 percent to 6,600.06. It is Asia's best performer in 2010 with a 95 percent gain. It fell 2.4 percent in six sessions through Wednesday. Large caps Bukit Darah and Nestle Lanka gained 2.7 percent and 4.5 percent respectively. The bourse is trading at the highest forward price-to-earnings ratio in Asia and global emerging markets at 20.2 times, compared with 13.8 and 13.0 respectively, Thomson Reuters StarMine data showed. The CSE's 14-day relative strength index is at 47.6, between the neutral limit of 30-70. Foreign investors have sold a net 25.8 billion rupees in shares this year, and on Friday sold a net 13.3 million rupees. Turnover was 648.1 million rupees ($5.8 million), slightly above the 2009 daily average of 593.6 million rupees, but well below year to date daily average of 2.45 billion. The rupee closed weaker at 111.69/70 rupees a dollar from Thursday's close of 111.58/60 due to dollar demand from importers, currency dealers said. FACTORS TO WATCH: - Relaxation of foreign exchange controls, new financial and fiscal reforms in 2011 budget due on Nov. 22 - If foreign funds start to buy shares in big volumes after U.S. QE2 stimulus - Performance shown in September quarter earnings DATA Colombo Stock Exchange: Stock Market Volume (Shares) Current Volume Average Volume 90 Days 20,394,880 76,132,796 Yield and Price of Sri Lanka's sovereign bonds: Maturing year Tenure amount Reuters yield 2012 5-yr $500 mln 3.219-2.907 2014 5-yr $500 mln 3.751-3.631 2020 10-yr $1,000 mln 5.2347-5.1104 * For Sri Lankan treasury securities benchmarks and data, please click and * For interbank lending rate or call money rate or * For secondary market rates, please see. ($1=111.695 Sri Lankan rupees) (Reporting by Ranga Sirilal and Shihar Aneez; Editing by Bryson Hull) ((; +94-777-394-603; Reuters Messaging; Keywords: MARKETS SRILANKA/ (If you have a query or comment on this story, send an email to COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved.

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