Bourse gains as investors snap-up blue chips

Reuters: Sri Lankan shares rose on Friday as investors snapped up blue-chip companies, helping the main index recover.

The Colombo Stock Exchange’s main index closed 1.4 per cent or 68.19 points firmer to end at 4,991.21, its highest since 25 May.

“The market has fallen too much and now it is trying to correct itself,” said a stockbroker asking not to be named.

After the market closed on Friday, the International Monetary Fund said it is satisfied over Sri Lanka’s recent policy measures, while revising down the country’s 2012 growth projection to 6.75 per cent from an earlier 7.5 per cent. The market fell 10.8 per cent in May due to economic and political worries. It has recovered 3.3 per cent so far in June. Market heavyweight and the top conglomerate John Keells Holdings gained 1.24 per cent to Rs. 188.30. The day’s turnover was Rs. 758.4 million ($ 5.74 million), the highest since 23 May, but less than the daily average of Rs. 941.4 million this year. Foreign investors were net buyers of Rs. 28.2 million worth of shares extending the net foreign inflow so far this year to Rs. 22.62 billion.



The rupee edged up to 131.70/80 against the dollar from Thursday’s close of 132.00/132.10 on exporter dollar conversions, dears said. It hit an all time low of 133.60 on Tuesday on importer dollar demand.

On Thursday, Treasury Secretary P.B. Jayasundera told Reuters the rupee had hit its low and would stabilise around 125 per dollar in the medium term.

The currency has depreciated 16.4 per cent since 21 November, when the Government allowed a three per cent devaluation.