Sri Lanka bourse falls on credit shortage; rupee up - Reuters

COLOMBO, Dec 7 (Reuters) - Sri Lanka's stock market slipped
on Tuesday for a second day due to low credit for retail
investors amid concern over the phasing out of margin trading
by mid next year, but large crossings boosted the trading
volume.


The main share index .CSE fell 37.22 points or 0.57
percent to 6,469.08. Asia's best performer in 2010 has gained
91.1 percent, ahead of second-ranked Indonesia's .JKSE 46.9
percent.

The bourse is trading at a forward price-to-earnings ratio
of 20.3, the highest in Asia, compared with all-Asia's 13.2 and
global emerging markets' 12.2, Thomson Reuters StarMine data
showed.

The CSE's 14-day relative strength index is at 46.7,
between the lower and upper neutral limit of 30 and 70.

The bourse saw trading volume of 192.5 million shares on
Tuesday, against average volume of 101.3 million and 50.8
million in the past five and 30 days, respectively. The 90-day
average volume is 69.9 million.

Foreign investors have sold a net 24.5 billion rupees in
shares this year, and on Tuesday sold a net 280.5 million.

Turnover was 3.4 billion rupees ($10.6 million), nearly six
times the 2009 daily average of 593.6 million rupees mainly due
to block trading in Lanka Hospitals LHCL.CM and Seylan Bank
SEYB.CM, traders said.

The rupee LKR= closed firmer at 111.12/15 a dollar from
Monday's 111.15/18 on banks selling dollars, currency dealers
said.

FACTORS TO WATCH:

- SEC moves to increase market liquidity [ID:nL3E6N70AF]

- Moves by the central bank to curb rising inflation

- Whether forex control relaxation will attract more
foreign buying in shares or corporate debentures

- Extent of the rupee's rise and how the central bank might
ease appreciation pressure [ID:nSGE6AM0AB]

DATA

Colombo Stock Exchange:

Stock Market Volume (Shares)

Current Volume Average Volume 90 Days
192,489,433 69,863,829

Yield and Price of Sri Lanka's sovereign bonds:

Maturing year Tenure amount Reuters
yield LK032736246= 2012 5-yr $500 mln
3.464-2.999 LK045930114= 2014 5-yr $500 mln
4.258-4.101 85227SAH9=RRPS 2020 10-yr $1,000 mln
5.6129-5.4836

* For Sri Lankan treasury securities benchmarks and data,
please click LKBMK= and LKCMTBMK=

* For interbank lending rate or call money rate CLIBOR or
CLIBOS

* For secondary market rates, please see <0#LKBMK=>.
($1=111.165 Sri Lankan rupees)
(Reporting by Ranga Sirilal and Shihar Aneez; Editing by
Rajesh Pandathil)