Bourse recovers on banks, retail buying

Thursday, 30 May 2013 01:23 - - {{hitsCtrl.values.hits}}

REUTERS: Sri Lankan shares recovered from the previous session’s near one-week low on Wednesday helped by banking shares and retail investor buying, while the rupee ended steady in dull trade.

The main stock index rose 0.33%, or 21.11 points, to close at 6,455.81, edging up from its lowest since 17 May, touched on Tuesday.

The index had hit a 19-month high last Thursday.

“At the bottom end, we saw some retail buying came in and the market is consolidating at these levels with blue-chips holding on,” said a stockbroker who declined to be identified.

The banking sector index rose 0.41% led by biggest listed lender Commercial Bank of Ceylon PLC which rose 1.81% to Rs. 123.60 a share.

Foreign investors were net buyers of shares worth of Rs. 102.5 million (US$ 810,900), extending net foreign inflows this year to Rs. 13.38 billion.

Turnover was Rs. 906.1 million, less than this year’s daily average of Rs. 1.04 billion.

The market’s 14-day Relative Strength Index (RSI) was still in over-bought territory, at 78.44 on Wednesday and has been above the upper neutral level of 70 since 16 April, Thomson Reuters data showed.

The rupee ended flat at Rs. 126.48/55, per dollar in light trade as importer dollar demand offset exporter sales of the greenback, dealers said.