Tuesday, 19 August 2014 02:25
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Reuters: Stocks rose on Monday to a near three-year closing high, led by large-cap shares such as Ceylon Tobacco Co Plc and foreign buying in John Keells Holdings Plc as expectations of better earnings and low interest rates lifted appetite for risky assets.
The main stock index rose 0.44%, or 30.86 points, to close at 6,974.71, its highest finish since 9 September 2011.
The index has gained 18% so far this year.
“The market recovered after the profit-taking (on Friday) and people started buying. We might see a correction here and there, but the market will continue its run on low rates,” said a stockbroker asking not to be named.
The Bourse saw net foreign inflows of Rs. 238.9 million ($ 1.8 million) on Monday, extending the year-to-date net foreign inflow to Rs. 12.01 billion worth of shares.
Turnover was Rs. 1.79 billion, higher than this year’s daily average of Rs. 1.14 billion.
Conglomerate John Keells, which accounted for 54% of the day’s turnover, rose 0.84% to Rs. 240 a share. Foreign investors bought a net 1.35 million Keells shares, Bourse data showed.
The Central Bank held key policy rates at multi-year lows for the seventh straight month on Friday.
Ceylon Tobacco Co, which led the gain in the overall index, rose 3.36% to Rs. 1,224.70, while Sri Lanka Telecom Plc rose 2.95% to Rs. 55.80.
