Saturday, 10 January 2015 03:56
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Reuters: The Sri Lankan index closed at a near four-year high on Friday, after pro-business opposition candidate Maithripala Sirisena defeated President Mahinda Rajapaksa, raising hopes that the new government will push through economic reforms.
The main stock index ended 1.44%, or 108.19, higher at 7,605.79, its highest since March 2011.
“The market is optimistic after the election results. It is mainly because of possible economic policies by the main opposition United National Party, which backed the opposition candidate,” a stockbroker said. Rajapaksa lost his bid for a third term on Friday, ending a decade of rule that critics say had become increasingly authoritarian and marred by nepotism and corruption. The Central Bank last week said the economy would grow annually at 8% between 2015 and 2020 after achieving an estimated growth of 7.8% in 2014.
Turnover was Rs. 3.74 billion ($ 28.48 million), boosted by local buying and well above last year’s daily average of Rs. 1.42 billion, stock exchange data showed.
The index gained 23.4% in 2014 after rising 4.8% in the previous year. It has lost 3.5% since 19 November when Rajapaksa announced his decision to hold a snap presidential election on 8 January. The rupee forwards traded slightly higher in dull trade on Friday, while exporters stayed away awaiting clear policy direction after the election, dealers said.
Four-day forwards, which were actively traded, ended at 132.75/85 per dollar compared with Thursday’s close of at 132.80/90, dealers said.
“It was very dull. Everybody is awaiting to see the policies of the new Government,” a dealer said.
Rupee forwards were maintained around 132.00 in December as the central bank defended the currency through moral suasion.
