Wednesday, 22 April 2015 01:13
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Reuters: Shares closed at their highest in more than one month on Tuesday, led by banks as investors picked select stocks on expectation of better earnings ahead of the results season, brokers said.
The main stock index ended higher 0.26%, or 18.22 points, at 7,098.60, its highest close since 16 March. It had gained 2.8% since the Central Bank cut rate on Wednesday, while yields on government securities have fallen 30-50 basis points.
The market saw a net foreign inflow of Rs. 219.5 million ($ 1.65 million) on Tuesday, extending the net foreign inflow this year to Rs. 3.8 billion.
Turnover was Rs. 683.7 million, less than this year’s daily average of around Rs. 1.1 billion.
“There was some buying interest in select shares with the earnings season around the corner,” said Dimantha Mathew, research manager at First Capital Equities Ltd.
He said the new buying interest would not last long and that there would be volatility in the market until the Parliamentary elections are announced.
Analysts said the market would be dull due to political uncertainty and that many were on a wait-and-see mode before the parliamentary elections.
Shares of DFCC bank Plc rose 1.37%, while large cap Ceylon Tobacco Company Plc jumped 3.55%.
The index lost 6.6% last month, its biggest monthly drop since October 2012, as investors sold their holdings to settle margin trades amid concerns about political stability and a rise in interest rates.
Investors have been cautious due to political uncertainty as Prime Minister Ranil Wickremesinghe’s party did not have a majority in parliament, stockbrokers said.
