Wednesday, 29 October 2014 00:16
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Reuters: Stocks ended a tad firmer at a more-than-one-week high on Tuesday, gaining for a fourth straight session with foreign buying boosting sentiment.
Sri Lanka’s main stock index ended up 0.08%, or 6.04 points, to 7,227.12, its highest close since 17 October.
“Market is going slow these days with low retail participation,” said First Capital Equities Ltd. research analyst Reshan Wediwardana.
The market saw a net foreign inflow of Rs. 934.7 million on Tuesday, extending the year-to-date net foreign inflow to Rs. 11.75 billion worth of shares, exchange data showed.
Analysts said the poor retail participation was due to the lower-than-expected stimulus in the Budget, while the market awaited further clarity on the 2015 Budget announced by President Mahinda Rajapaksa last Friday.
Rajapaksa, also the country’s finance minister, unveiled a budget that sought to trim value-added tax and cut the deficit while providing a range of handouts, mainly for rural communities.
The day’s turnover was Rs. 1.66 billion ($ 12.69 million), more than this year’s daily average of Rs. 1.36 billion.
The gains were led by thin-volume trade in Ceylon Tobacco Company Plc, which rose 1.13% to Rs. 1,150.
Shares in leading mobile operator Dialog Axiata Plc rose 0.82% to Rs. 12.30.
Stockbrokers said trading in local shares may be volatile in the near term due to the revised presidential poll schedule and a possible bottoming out of interest rates.
