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Sri Lanka shares hit fresh peak after doubling in 2009

[Reuters, Monday, 4 January 2010 11:17 No Comment]

Sri Lankan shares .CSE rose 2.9 percent to a new record high on Monday as investors stepped up their buying on the first day of the new year on hopes the island’s economic recovery will gather pace, traders said.

The All-Share Price Index .CSE of the Colombo Stock Exchange climbed to 3,483.66 points by midday. surpassing its previous peak of 3,390.31 hit on Dec. 30.

"Investors are expecting a boom in the market this year," said Harsha Fernando CEO at SC Securities in Colombo.

The bourse was closed on Friday for a special new year holiday and Monday is the first trading day in 2010.

Sri Lanka’s bourse was one of the world’s best performing markets in 2009, jumping 125 percent on optimism that the end of the country’s long civil war in May would bring in a flood of badly needed foreign investment.

Low interest rates and slowing inflation have also fuelled foreign investor interest.

Sri Lanka’s economy should grow by more than 6 percent in 2010 compared with an expected 3.5 percent in 2009 as investor confidence continues to recover, the central bank governor said on Friday. [ID:nSGE5BT01U]

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