Bourse closes flat

Reuters: Shares ended flat in an overbought market on Thursday, but turnover rose to its highest in more than three weeks as conglomerate Hemas Holdings PLC bought a majority stake in pharmaceutical firm J.L. Morison Sons and Jones (Ceylon) PLC.

The main stock index ended barely changed, closing 0.01%, or 0.69 points, weaker at 6,455.12.

The Hemas-JL Morrison deal boosted the day’s turnover to Rs. 2.56 billion, its highest since 6 May and well above this year’s daily average of Rs. 1.05 billion.

“The market is not moving as there is no market-moving news and turnover was pushed by block deals in Morison,” said a stockbroker who declined to be identified. The telecom sector index fell 0.99% with top fixed-line telephone operator Sri Lanka Telecom PLC  falling 1.38% and leading mobile phone operator Dialog Axiata PLC sliding 1.06%.

Foreign investors were net buyers of Rs. 165 million ($ 1.30 million) worth of shares, extending net foreign inflows this year to Rs. 13.55 billion.

The market’s 14-day Relative Strength Index (RSI) was still in over-bought territory, at 78.252 on Thursday and has been above the upper neutral level of 70 since 16 April, Thomson Reuters data showed.

The rupee edged up at 126.45/50 per dollar, little changed from Wednesday’s close of 126.48/55 on thin volume of exporter dollar sales, dealers said.