Stock market rises to one-month high on more foreign buying

Stocks rose for a fifth straight session on Wednesday, hitting a one-month high on foreign purchases of John Keells Holdings.

Local investors remained on the sidelines as yields in T-bills rose for a third straight week.

The main index ended 0.21% or 11.96 points higher at 5,734.82, its highest close since 19 February.

Foreign investors were net buyers of Rs. 209.7 million worth of shares, extending the year-to-date net foreign inflow to Rs. 4.19 billion worth of shares.

Yields on Treasury bills rose for the third straight week at Wednesday’s auction even though the Central Bank kept its key policy rates unchanged for the third month in a row.,

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 climbed 2.34% to a more than two-year high of Rs. 249.50. Turnover was Rs. 539.8 million ($ 4.26 million), around half of this year’s daily average of Rs. 1.02 billion.

The rupee ended weaker at 126.74/80 to the dollar from Tuesday’s close of 126.55/65.