Bourse extends winning streak on banks, construction shares

Saturday, 15 November 2014 00:28 - - {{hitsCtrl.values.hits}}

Reuters: Stocks broke past a key psychological barrier of 7,500 on Friday to hit a 43-month high as investors picked up banks and construction shares on hopes of growth in those sectors. Continued foreign buying, low interest rates and better earnings expectations also helped sentiment. Sri Lanka’s main stock index rose 0.29%, or 21.40 points, to 7,501.09, its highest closing level since 18 April 2011. “Foreign and local investors are looking at the market and it’s on the run, with low interest rates and high growth expectations supported by good earnings,” said Reshan Kurukulasuriya, Chief Operating Officer of Richard Pieris Securities Ltd. Friday’s turnover was Rs. 2.4 billion ($18.3 million), well above this year’s daily average of Rs. 1.42 billion. Foreign investors net bought Rs. 192 million worth of stocks. The Bourse has witnessed foreign inflows of Rs. 18.06 billion this year, exchange data showed. Lanka Orix Leasing Co Plc rose 5.7%, leading the overall gains, while Union Bank of Colombo Plc added nearly 7%. Shares of Access Engineering Ltd. rose 2.3%. Traders said hopes for a boost in the vehicle leasing and construction businesses helped those shares. The Central Bank kept key policy rates steady for a ninth straight month in October, saying private sector credit growth was picking up and long-term lending rates were adjusting downwards.

ASPI crosses 7,500 mark

The Colombo Stock Exchange’s (CSE) All Share Price Index (ASPI) crossed the 7,500 mark yesterday, closing at 7,501.09 points. This is the first instance after three years that the ASPI crossed 7,500 points since closing on 7,547.9 points on 18 April 2011.