Wednesday, 19 November 2014 00:28
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Reuters: Stocks rose for a sixth straight session on Tuesday to their highest closing level in more than three-and-a-half years, led by telecom and banking stocks as the Central Bank held its key policy rates steady at multi-year lows.
The Central Bank of Sri Lanka kept key policy rates steady at record lows for a 10th straight month, and said stable inflation and steady credit expansion should help the economy grow by around 8% over this year and next.
Continued foreign buying, low interest rates and hopes of better corporate earnings helped boost investor sentiment, traders said.
“Now, the market has gone up a bit. I believe there could be small profit-taking, especially in December there could be profit-taking and correction,” said Dimantha Mathew, Manager, Research at First Capital Equities Ltd.
The main stock index rose 0.32%, or 24.23 points, to 7,548.23, its highest closing level since 12 April 2011.
The market has been in the overbought region since 13 November. The relative strength index was 76.644 on Tuesday, above the upper neutral range of 70, Thomson Reuters data showed.
Turnover was Rs. 3.83 billion ($ 29.24 million), exchange data showed, well above this year’s daily average of Rs. 1.44 billion.
Foreign investors were net buyers of Rs. 212.6 million worth of shares, extending net foreign buying so far this year to Rs. 18.43 billion, exchange data showed.
Dialog Axiata Plc rose 6.87%, leading overall gains, while Carson Cumberbatch Plc added 7.93%.
Shares in the country’s biggest listed lender, Commercial Bank of Ceylon Plc, rose 0.80%.
