Shares, rupee edge up in slow holiday trade

COLOMBO, - Sri Lankan shares edged up on Tuesday in light trade with many investors yet to return to the market after a long weekend holiday, while the rupee ended firmer.

The Colombo All-Share index closed 0.42 percent firmer, or 10.98 points, at 2,625.61.

Sri Lankans celebrated the Sinhala-Tamil new year on April 12-13 and markets were closed on Monday.

“Many investors are still in holiday mood. The market was dull with retail trade,” said Harsha Fernando, CEO at SC Securities in Colombo.

Market turnover was 98.8 million rupees ($0.91 million), well below last year’s daily average of 400 million rupees.

No. 1 mobile phone operator Dialog Telekom, which makes up more than 15 percent of the index, closed 1.52 percent up at 16.75 rupees as calculated on a weighted average.

Leading fixed-line telephone operator Sri Lanka Telecom closed flat at 48.75 rupees.

The market rose 2.3 percent in the first week of April, boosted by a $297 million stake sale in Sri Lanka Telecom.

The main index is up 3.33 percent in 2008, recovering from a slide of almost 7 percent in early January when the government scrapped a shaky truce with Tamil Tiger rebels.

The rupee closed slightly firmer at 107.82/88 per dollar from Friday’s close of 107.88/90, as banks sold dollars to cover rupee liquidity shortages due to people holding on to cash to cover holiday expenses.

Call rates or interbank lending rate fell to 18.127 percent from Friday’s 19.261 percent.