Thursday, 25 December 2014 00:35
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Reuters: Sri Lankan stocks rose on Wednesday, with trading in development lender DFCC Bank boosting turnover in otherwise thin pre-Christmas trade, shrugging off concerns over political uncertainty ahead of upcoming elections dented sentiment.
Turnover hit a near six-week high of 3.84 billion rupees ($ 29.29 million) after an individual investor in DFCC Bank sold part of his stake, dealers said. Wednesday’s turnover was more than double this year’s daily average of 1.42 billion rupees, stock exchange data showed.
The main stock index gained 0.35%, or 25.20 points, to close at 7,263.25, its highest close since 3 December.
DFCC Bank ended flat at 218.50 rupees. Top conglomerate John Keells Holdings rose 0.28% to Rs. 250.
“Apart from the DFCC deal, the sentiment is dull because of the political uncertainty and holiday mood. We see the index on the sidelines until the elections,” a stockbroker said.
President Mahinda Rajapaksa’s United People’s Freedom Alliance lost its two-thirds majority in Parliament for the first time in more than four years after two ruling party legislators, including a cabinet minister, defected to join the opposition on Monday.
Fifteen legislators, including former health minister Mithripala Sirisena, who is challenging Rajapaksa’s bid for the third term, have defected after the president announced snap elections last month. Two opposition legislators have left to join the ruling party.
Political analysts see a tight race between Rajapaksa and Sirisena, whose New Democratic Front has promised to eliminate rampant corruption and reduce prices of essential goods and fuel by cutting taxes.
Rajapaksa said on Tuesday he would ensure good governance and media freedom if he bags a third term.
Net foreign inflows into stocks in the session were Rs. 11.7 million, extending net inflows to Rs. 21.64 billion so far this year, exchange data showed.
