Foreign buying boosts Bourse

Reuters: Stocks edged up for the fourth straight session on Tuesday to a near four-week high on foreign buying in blue chips like market heavyweight John Keells Holdings.

Many investors stayed away because of rising interest rates.

The main index ended 0.26% or 14.85 points higher at 5,722.86, its highest close since 22 February.

Analysts said many domestic investors stayed on the sidelines as yields on Treasury bills rose for the second week on Wednesday even though the Central Bank kept its key policy rates unchanged for a third straight month.

Analysts also said retailers were worried about the effect of allegations Sri Lanka faces at the UN Human Rights Council in Geneva over the conduct of its military in the final stages of the 2009 defeat of Tamil Tiger separatists.

Shares in conglomerate John Keells Holdings rose 1.58% to Rs. 243.80.

Turnover was Rs. 933.6 million ($ 7.39 million), less than this year’s daily average of Rs. 1.02 billion.

Foreign investors were net buyers of Rs. 221.8 million worth of shares, extending the year-to-date net foreign inflow to Rs. 3.98 billion worth of shares.

The rupee ended weaker at 126.55/65 to the dollar from Monday’s close of 126.30/35.