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S.Lanka stocks at 6-mo high on war-end hopes

Mon May 11, 2009 11:43pm IST
 
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* Bourse subdued, but still at 6-mo high on war-end hope

* Investors concern on civilians death-brokers

By Shihar Aneez

COLOMBO, May 11 (Reuters) - Sri Lanka shares edged up to a new six-month high on Monday led by optimism over an end to the war, but investors were concerned on repercussions over increased civilian deaths in the war zone, brokers said.

The rupee LKR= edged up on low importer dollar demand.

The Colombo All-Share index .CSE edged up 0.22 percent or 4.08 points to 1,900.09, to its highest since Nov. 6.

It rose 3.13 percent last week, mainly on the apparent end to a 25-year against Tamil Tiger separatists, and is up 26.5 percent so far for this year.

"The market was subdued on concern over international repercussions over civilian deaths during the weekend," said Mohandas Thangarajah, a broker at First Guardian Equities. Analysts and traders said there was retail profit-taking on select shares like John Keells Holdings JKH.CM after they rose sharply in last week's rally.

The cornered Tamil Tigers on Sunday accused Sri Lanka of killing hundreds of civilians in an artillery barrage, which the military said the guerrillas had fired off themselves to win sympathy for a truce to stave off defeat. [ID:nCOL402116]  Continued...

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