Stock market at 8-week high; hopes on earnings, political stability help

Reuters: Shares rose to an eight-week high on Friday, gaining for a third straight session, as hopes of improved corporate earnings and political stability after the Parliamentary polls next month boosted investor sentiment.

At 0615 GMT, the main stock index was up 0.48% at 7,247.09, its highest level since 29 May. Turnover stood at Rs. 633.2 million ($4.74 million) in early trade on Friday.

“The market has been up on positive sentiment on the elections and expectations over a strong government after the elections,” said Reshan Kurukulasuriya, Chief Operating Officer of Richard Pieris Securities Ltd.

“Next week we could see some dip with month-end settlements. But overall it’s positive sentiment.”

Analysts also expect Sri Lankan companies to post strong results for the April-June quarter.

Hopes of political stability after the 17 August Parliament election also helped sentiment, they said.

The election is expected to help strengthen President Sirisena’s political position with a possible victory for the current ruling coalition.

The rupee was steady in dull trade as a State-owned bank maintained its dollar-selling rate at 133.70, dealers said.

“It is a very dull market. There are no bids or offers. The rupee is steady as the State bank is selling at 133.70,” a currency dealer said.