Sri Lanka shares up from 2-mo low on bargain hunting

COLOMBO, Nov 6 (Reuters) - Sri Lanka's shares .CSE rose on Friday from a near two-month low, as investors bought shares battered in the recent fall, triggered by weak investor appetite on economic woes and trade union protests ahead of national polls.

The All-Share Price Index of the Colombo Stock Exchange jumped 1.99 percent or 56.80 points to 2911.62, from its lowest close since Sept. 15. It fell 5 percent in five straight sessions up until Thursday.

Analysts said cautious investors bought shares across the board, but in thin volume due to economic and protest worries.

The bourse has fallen 7 percent since the government said on Oct. 13 it will hold national polls by April.

Frequent protests and trade union actions have dampened investor confidence, which had been already on the decline on worries of political uncertainty ahead of national polls.

Investors are also wary of a likely loss of a European Union trade concession that helped boost Sri Lanka's top export, garments, as the EU has been considering to withdraw the concession over a rights abuse probe.

Worries of lower-than-expected corporate earnings and the arrest of one of Sri Lanka's main investors in a U.S. insider trading case in mid-October, have also hampered a market rise. For more political risks, click [ID:nSP478539]

Conglomerate Carson Cumberbatch CARS.CM surged 5.56 percent to 327.25 rupees, while top listed private lender Commercial Bank of Ceylon COMB.CM rose 4.03 percent to 174.25 rupees.

Market heavyweight John Keells Holdings JKH.CM, which posted a 43 percent dip in net profit in the September quarter [ID:nCOL450119] last week, gained 2.38 percent to 140 rupees.

Turnover was 357.7 million rupees ($3.12 million), less than last year's daily average of 464 million rupees.

With 93.7 percent return so far this year, the CSE is still one of the best performing bourses in Asia.

The rupee LKR= closed flat at 114.80/85 a dollar with the central bank buying dollars at 114.80 for a twelfth straight week, dealers said.

Sri Lanka central bank on Thursday said it will allow foreign currency outflows up to $500,000 for foreign investments without its approval with effect from December. [ID:nCOL542636]

The interbank lending rate or call money rate CLIBOR edged up to 9.079 percent from Thursday's 9.079 percent.