Bourse snaps 4-day falls; foreign buying in Keells boosts
Wednesday, 25 June 2014 01:01
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Reuters: Stocks snapped a four-day losing streak on Tuesday, recovering from a more than one-week closing low hit on Monday, led by foreign buying in market heavyweight John Keells Holdings Plc.
The market would move sideways in the short term with lower risk due to lower interest rates, said analysts.
The main stock index rose 0.18%, or 11.52 points, to close at 6,310.87, edging up from its lowest close since 11 June hit on Monday. It hit a more than one-year high on 17 June.
Market heavyweight John Keells Holdings, which ended 0.8% firmer, accounted for 35.8% of the day’s turnover. The biggest listed lender Commercial Bank of Ceylon Plc rose 1.20%.
The Bourse saw a net foreign inflow of Rs. 331.2 million ($ 2.54 million) worth of stocks on Tuesday, mainly in Keells, ending two days of outflows. The net foreign inflows so far this year have reached Rs. 5.83 billion.
Turnover was Rs. 874.9 million, less than this year’s daily average of Rs. 999.7 million.
Analysts said investors are waiting to see the impact of the recent ethnic violence and possible implications after a Government Spokesman said Sri Lanka bought Iran crude via third parties.
Stockbrokers said investors perceive the violence in the previous weekend that killed at least three people and left over 75 people seriously injured could hit the market and the tourism sector.
The Government Spokesman said on Thursday the country has been buying Iranian crude from various countries via third parties, and avoiding Western sanctions with the understanding of the United States. The United States denied the claim.
The market has been on a rising trend since late February due to continued foreign buying and lower interest rates. It has been on a falling trend since Wednesday after the Central Bank held the key policy rates steady, though some had expected a rate cut.
