Bourse improves; Rupee weakens

The Colombo stock market saw improved investor sentiments by remaining in the positive territory throughout the day whilst the Rupee weakened.

The All Share Index gained 0.43%, or 20.23 points, to 4,757.98, from its lowest close since 19 July 2010.

Turnover was Rs. 499.5 million, well below the daily average of Rs. 975.1 million this year

NDB Stockbrokers said heavy interest was seen in John Keells Holdings (JKH) making the counter the top contributor for the day with a gain of 1.2%.

It said positive movement was further supported by blocks which changed hands in Aitken Spence and DFCC Bank while other banking and finance counters such as Commercial Bank, Lanka Orix Leasing Company and Singer Finance also witnessed further accumulation.

Diversified sector emerged as the top contributor to the market turnover (due to JKH, Vallibel One and Aitken Spence) and the sector index gained by 0.22%. The share price of JKH gained by Rs 2.10 (1.18%) to close at Rs 179.40 and the share price of Vallibel One surged by Rs. 1.40 (10.53%) to close at Rs 14.70 while Aitken Spence’s share price edged up by Rs 0.80 (0.73%) to close at Rs 109.80.

Banking Finance and Insurance sector became the second highest contributor to the market turnover (due to DFCC Bank and NDB) and the sector index increased by 1.08%. The share price of DFCC Bank lost by Rs 2.50 (2.31%) to close at Rs 105.50 while NDB share price gained Rs 0.10 (0.10%) to close at Rs 100.00.

Foreign investors, however, were net sellers of Rs. 20.6 million ($ 158,300) worth of shares on Thursday, but they are net buyers of Rs. 22.6 billion worth so far this year.

Meanwhile the Rupee ended weaker at Rs. 130.35/45 against the dollar from Wednesday’s close of Rs. 130.00/35 on importer dollar demand in absence of intervention by State banks, dealers said.

The Central Bank said last week it believed the rupee would stabilise at levels stronger than Rs. 125 to the dollar.