Stocks up on peace talks hopes

COLOMBO: Stocks rose on Tuesday as traders saw a fall in violence and hoped it would be followed by a breakthrough in the island's peace process.

The Colombo All Share index rose 2.16 percent to 2,336.18 points. Turnover was at 160 million rupees ($1.55 million), less than the recent daily average.

"The market is up with investors expecting a breakthrough, especially with the Government agreeing to allow the LTTE to use a private chopper to transport the eastern commanders," said Prasanna Chandrasekera, assistant manager with John Keells Stock Brokers in Colombo.

Market heavyweight Dialog Telekom rose 0.75 percent at 21.00 rupees while conglomerate John Keells Holdings rose 3.00 percent to 154.00 rupees.

The rupee ended slightly weaker at 102.67/68 to the dollar compared with Monday's close of 102.65/102.67 as a state bank bought dollars to cover an import bill, a trader said.

Call rates in the brokers' market were 10.999 percent against 10.742 on Monday.

Reuters, Tuesday