Bourse up from 7-week low

Saturday, 23 February 2013 00:20 - - {{hitsCtrl.values.hits}}

Reuters: Stocks recovered from a seven-week low on Friday on foreign buying in heavyweight John Keells Holdings, but turnover slumped to a near eight-week low as domestic investors stayed away after some worrying International Monetary Fund comment.

The main share index ended 0.17% or 9.50 points firmer to 5,735.61, from its lowest since 2 January.

Turnover was Rs. 300.09 million ($ 2.36 million), the lowest since 31 December and well below this year’s daily average of Rs. 1.06 billion.

“Foreign buying in Keells pushed the market up but many investors are on the sidelines awaiting direction on interest rates and the rupee,” said a stockbroker who declined to be identified.

The IMF said last week the economy faced high inflation and lower tax revenue risks, prompting speculation the Government may turn to expensive commercial borrowing to bridge a budget gap.

Shares in John Keells Holdings rose 0.64% to Rs. 236.50.

Foreign investors bought a net Rs. 94.2 million worth of shares, most of them in Keells, but they have been net sellers of Rs. 744.36 million worth of shares this year.

The rupee ended weaker at 127.30/45 to the dollar from Thursday’s close of 127.15/20, on light importer dollar demand, dealers said.