Bourse remains on the up

Reuters: Shares closed at their highest level in 11 weeks on Tuesday, led by banking and diversified stocks on the back of strong earnings, brokers said. The main stock index rose 0.15%, or 11.18 points, to close at 7,266.20, its highest close since 27 February.

“The market is up because of the earnings; the banking sector was very good. The sector is moving heavily with large caps playing a major role,” said First Capital Equities Ltd. Research Manager Dimantha Mathew 

Tuesday’s turnover was Rs. 1.56 billion ($ 11.7 million), more than this year’s daily average of about Rs. 1.12 billion.

Foreign investors were net buyers of shares worth Rs. 273.4 million on Tuesday, extending the year to date net foreign inflow to Rs. 6.01 billion in equities.

Political uncertainty due to the UNP not having a parliamentary majority has been a drag on the market, though the trend reversed after the Central Bank cut key monetary policy rates to record lows on 15 April.

The index has gained 5.29% since the rate cut.

Shares of Aitken Spence Hotel Holdings Plc rose 5.32%, while Ceylon Tea services Plc rose 9.15%. Shares in Seylan Bank Plc rose 3.09% while conglomerate John Keells holdings Plc rose 0.25%. ($1 = 133.3000 Sri Lankan rupees).