Sri Lankan shares hit over 7-month high despite outflows

COLOMBO, Jan 24 (Reuters) - Sri Lankan shares hit seven-month highs on Friday as investors bought large cap stocks such as Ceylon Tobacco Co PLC, despite selling by foreign investors to reduce exposure to risky assets. 

 The main stock index rose 0.47 percent, or 29.49 points, to 6,255.63, its highest close since June 12. Foreign investors were net sellers for the first time in four sessions. 

They sold a net 384.82 million rupees worth of shares. But they have been net buyers of 826.6 million rupees so far this year. 

They had bought 22.88 billion rupees of stocks last year. 

 Offshore investors were net buyers for the last three sessions through Thursday on positive sentiment after the Colombo Stock Exchange and the Securities and Exchange Commission of Sri Lanka hosted an investor roadshow in Singapore earlier this week to attract more foreign funds. 

 Shares in large cap Ceylon Tobacco rose 1.73 percent to 1251.30 rupees, while Dialog Axiata PLC gained 2.15 percent to 9.50 rupees. 

 The index has gained 5.2 percent in the last 12 sessions including this week's 2 percent gain, 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 5.8 percent so far this year following a 4.8 percent gain in 2013, after having fallen in the previous two years. 

 The day's turnover was 1.5 billion rupees ($11.47 million), more than last year's daily average of about 828.4 million rupees. 

 ($1 = 130.7250 rupees) 

 (Reporting by Ranga Sirilal and Shihar Aneez; Editing by Anand Basu)
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