Stock market edges up, but posts 1st weekly loss in 3 weeks

Saturday, 2 April 2016 00:05 - - {{hitsCtrl.values.hits}}

Reuters: Shares rose for a third straight session to hit a one-week high on Friday led by large caps amid high turnover, but posted their first weekly decline in three as rising interest rates and economic woes dented sentiment, dealers said.

Turnover hit a three-week high of Rs. 2.01 billion ($13.81 million) on block deals, well above this year’s daily average of Rs. 794.4 million, even as foreign investors exited risk assets.

Foreign investors sold a net Rs. 235.4 million worth of shares on Friday, extending the year to date net foreign outflow to Rs. 2.22 billion worth shares.

The benchmark share index ended 0.18 % higher, or up 11.13 points at 6,083.01, its highest since 24 March.

The index lost 11.9 % in the March quarter.

“Some positive sentiment continued among the broker community and investors. But the gains could be short-lived with interest rates being on the high side and fiscal side problems still not being addressed,” said First Capital Equities Ltd Head of Research Dimantha Mathew.

Sri Lanka borrowed over 25 % more last year than in 2014, which included a 23 % rise in domestic borrowing and a 32 % jump in foreign borrowing, the finance minister said last week.

Yields on treasury bills increased between 47 and 74 basis points at a weekly auction on Wednesday despite the Central Bank keeping key rates steady at a policy review on Tuesday.

Shares in Richard Pieris and Company Plc rose 8.33 % while conglomerate John Keells Holdings Plc edged up 0.74 % and Distilleries Company of Sri Lanka Plc gained 1.84 %.