S.Lanka shares up 3 pct from 33-mo low on bargain-hunting

By Shihar Aneez

COLOMBO, Oct 13 (Reuters) - Sri Lankan shares rose 3.06
percent on Monday, recovering from a 33-month low as investors
went bargain-hunting after bluechips had hit deep lows.

The Colombo All-Share index .CSE closed 58.89 points up
to 1,983.58, its first rise in six sessions and fourth in the
last 25. It ended below 2,000 points on Friday for the first
time since Jan. 25, 2006.

"Some investors bought bluechips after the excessive fall
in recent times," Shivantha Meepage, a research analyst at HNB
Stockbrokers, said.

The bourse fell 10.7 percent or 230.84 points last week
alone, it biggest points drop, Reuters data showed. The market
had fallen 19.7 percent up until Friday in last 24 sessions. It
is down around 22 percent so far this year.

"But we do not see any improvements in investor sentiments
as the market was up in thin trade. If this recovery could
sustain with the bounceback of global markets, we could expect
some improved trading," Meepage added.

Sri Lanka's No.1 mobile phone operator Dialog Telekom
DIAL.CM, which hit a lifetime low of 6.50 rupees a share on
Wednesday, closed 7.14 percent firmer at 7.50 rupees a share,
calculated on a weighted average.

The market heavyweight, top fixed-line phone operator Sri
Lanka Telecom, rose 3.2 percent to 40.25 rupees while
conglomerate John Keells Holdings JKH.CM closed 1 percent up
to 76 rupees, recovering from a 45-month closing low.

Large cap conglomerate Bukit Darah BUKI.CM rose 8.11
percent to 1,200 rupees in thin trade while conglomerate Carson
Cumberbatch CARS.CM closed 6 percent firmer at 190 rupees.

Shares in Distilleries Company of Sri Lanka DIST.CM rose
4.89 percent up to 59 rupees, recovering from Friday's 2-year
closing low of 56.25 rupees.

The market turnover was 97 million Sri Lankan rupees
($898,100), well below last year's daily average of 400 million
rupees.

The rupee LKR= closed flat at 108.00 a dollar due to
central bank's intervention through a state bank.

The Public Debt Department at the central bank said on
Monday it has invited number of foreign banks for a proposed
$300 million syndicated loan to finance raft of government
infrastructure projects.

"We have invited more than 10 foreign banks and waiting for
their proposals by 17 of this month," C.J.P. Siriwardena, the
Superintendent of the Central Bank's Public Dept Department,
told Reuters.

Sri Lanka's central bank will keep protecting the rupee
against the U.S. dollar to maintain stability amid an
unprecendented global financial crisis, Central Bank Governor
Ajith Nivard Cabraal told Reuters on Friday. See [nCOL318304].

The interbank lending rate or call money rate CLIBOR fell
to 15.366 percent from Friday's 15.912 percent.

Both stock and currency markets will be closed on Tuesday
for a Buddhist religious holiday. Normal trading will resume on
Wednesday.
(Editing by Bryson Hull)