Bourse gains on mid-cap interest

Wednesday, 2 February 2011 00:27 - - {{hitsCtrl.values.hits}}

(Reuters) - Sri Lanka’s stock market edged up on Tuesday after three straight losses as retail investors bought mid-cap and penny stocks and foreign investors began buying after selling for the past eight sessions.

Foreign investors bought a net 21.8 million rupees’ worth shares on Tuesday. They have sold a net 2.9 billion rupees so far in 2011, after selling a record net 26.4 billion in 2010.

The island’s main share index closed 0.22 percent or 15.90 points firmer at 7,190.77. It hit a record closing high of 7,261.37 on Jan. 24 after touching a new intraday peak of 7,320.22 points.

Traded share volume was 96.3 million, against a five-day average of 114.9 million. The 30-day and 90-day average trading volumes were 87.1 million and 71.9 million respectively. Last year’s daily average volume was 69.2 million.

The bourse has been Asia’s best performer with an 8.36 percent gain in 2011 after being the top performer last year with a 96 percent return. Recent retail buying has pushed it deeper into the overbought region with the 14-day relative strength index at 72.6.

Turnover was 3.2 billion rupees ($28.8 million), more than last year’s daily average of 2.4 billion.

The rupee gained ending its four straight falls to close at 111.08/10 a dollar from Monday’s 111.18/111.22 as the central bank reduced its dollar trading band by 10 cents to 110.50/111.10 from 110.60/111.20, dealers said.

91-day TBill yield falls to 7%, lowest in over six years

THE yield on benchmark 91-day Treasury Bills yesterday fell to 7.00% its lowest level in more than six years.

The weekly primary auction for the week ending 4 February, 2011 for the re-issue of Rs.11 billion maturing Treasury bills saw heavy oversubscription with bids worth Rs. 21.5 billion received.

The Weighted Average Yield (WAY) on 364-day bill remain unchanged at 7.33 and that on 182-day Bill fell to 7.09% from 7.10% at previous auction. Government accepted Rs. 4.92 billion of the bids on the 364-day auction and Rs. 3.65 billion from the bids for 181-day auction with the balance Rs. 2.4 billion from the 91-day auction.