Bourse recovers from 2 week lows

Saturday, 4 June 2011 00:58 - - {{hitsCtrl.values.hits}}

(Reuters) - Sri Lanka’s stock market edged up on Friday led by heavy retail speculation in Capital Land, while the rupee edged up on heavy dollar selling by both exporters and banks.

Sri Lanka’s main share index closed 0.41 percent or 30.12 points firmer at 7,406.02, its highest since 31 May.

Speculative buying in Colombo Land & Development Company, which jumped 8 percent, boosted the turnover. Analysts said rumour of a revisited business plan under a new board of directors sparked the buying. The day’s turnover was 4.15 billion Sri Lanka rupees ($37.8 million), well above last year’s average of 2.4 billion and this year’s daily average of 2.87 billion.

Foreign investors were net buyers of 82.3 million rupees’ worth of shares on Friday, but they have sold a net 6.35 billion rupees worth shares in 2011 after a record 26.4 billion in 2010.

Traded volume was 183 million, highest since 25 May, against a five-day average of 137.2 million. The 30-day and 90-day average trading volumes were 93.5 million and 90.9 million respectively. Last year’s daily average was 67.9 million.

The bourse is still Asia’s best performer in 2011 with an 11.61 percent gain, after bringing in the region’s top return of 96 percent last year.

The rupee edged up to 109.68/70 a dollar from Thursday’s 109.70/75 on heavy dollar sales by exporters and banks, dealers said.