Sri Lankan stocks hit new record peak

Sri Lanka's benchmark share index rose on Friday to a new record high, but foreign investors sold to cash in profits, analysts said. Sri Lanka's main share index hit a new record close of 7,147.77 points with a 2.15 percent gain. The index is Asia's best performer in 2010 with a 111.1 percent gain and has risen 23.7 percent in September alone.
The recent surge has pushed the index into its overbought zone with the 14-day relative strength index (RSI) at 92.4, over the upper neutral limit of 70, Thomson Reuters data showed. It is trading at the highest forward price-to-earnings ratio in Asia and global emerging markets at 20.9 times, compared with 13.1 for all Asia and 12.1 for global emerging markets, Thomson Reuters StarMine data showed. Market turnover was 6 billion rupees ($53.8 million), more than 10 times the 2009 average, boosted by local buying.