Bourse stays on the up; blue chips lead

Saturday, 4 May 2013 00:16 - - {{hitsCtrl.values.hits}}

Reuters: Shares hit a 16-month closing high on Friday led by blue chips such as conglomerate John Keells Holdings, while retail investors bought select shares on expectations of a rate cut at the Central Bank’s policy meeting next week, traders said.

The main stock index rose 0.68%, or 40.81 points, to 6,013.18, its highest close since 3 January 2012.

Shares have been rising on hopes of a fall in interest rates after Treasury Secretary P.B. Jayasundera and the Central Bank said official interest rates could ease in May-June.

The market has risen 4.08% through Friday since the Treasury Secretary’s comments on 9 April.

“Retailers are playing little with the signal of interest rates coming down,” said an analyst.

The International Monetary Fund said on Thursday Sri Lanka must not loosen monetary conditions as inflation remains a concern, even though prices had risen at a slower pace in April than the previous month.

Shares in John Keells Holding PLC rose 1.2% to Rs. 253.

The turnover was Rs. 881.5 million ($ 6.97 million), well below this year’s daily average of Rs. 963.9 million.

Foreign investors were net buyers of Rs. 48.39 million of shares, extending the net foreign inflow so far this year to Rs. 8.93 billion. Last year, the Bourse saw a net inflow of $ 303 million.

The rupee ended weaker at 126.30/40 per dollar from Thursday’s close of 126.10/20 on importer dollar demand, currency dealers said.