Sri Lanka shares gain; John Keells leads

COLOMBO, Jan 20 (Reuters) - Sri Lankan stocks rose on Monday, led by diversified shares such as John Keells Holdings PLC, but foreign investors sold risky assets in an overbought market. 

 The main stock index rose 0.42 percent, or 25.63 points, to end at 6,156.68. "We see positive sentiment and retail investors are gradually coming in to the market," a stockbroker said. 

"The fall in interest rates and the Singapore road show should help the market to sustain the gains." 

 Officials from the bourse and the Securities and Exchange Commission along with some top company officials and brokers are in Singapore for a road show to attract more foreign funds. 

 Shares of market heavyweight and top conglomerate John Keells Holdings rose 1.97 percent to 242.70 rupees. 

 The market has gained 3.56 percent in the last eight sessions, which analysts attributed to the central bank's interest rate cut on Jan. 2 and the recent fall in T-bill yields. 

 The index has been in an overbought region since Jan. 7, Thomson Reuters data showed. 

It has risen 3.69 percent so far this year after a 4.8 percent gain in 2013 after having fallen in the previous two years. 

 The day's turnover was 675.8 million rupees ($5.17 million), below last year's daily average of about 828.4 million rupees. 

 Foreign investors were net sellers for the second straight session on Monday, selling 46.9 million rupees worth of shares. 

But they have been net buyers of 591.9 million rupees in shares so far this year after buying 22.88 billion rupees of stocks last year. 

 ($1 = 130.7000 Sri Lanka rupees) 

 (Reporting by Ranga Sirilal and Shihar Aneez; Editing by Sunil Nair)
http://www.reuters.com