Stocks jump 1.3% on retail trade to hit three-month high

Friday, 31 August 2012 00:49 - - {{hitsCtrl.values.hits}}

Reuters: Stocks rose 1.3 per cent on Thursday to hit a three-month high with retail traders buying speculative shares as the appointment of someone seen as market-friendly as head of the regulator boosted sentiment.

Nalaka Godahewa took over as Chief of the Securities and Exchange Commission on Wednesday evening.

The Colombo Stock Exchange’s main index gained 1.29 per cent, or 66 points, to 5,180.15, its highest close since 21 May. The market has fallen 14.72 per cent this year.

“Mostly local retail trade pushed the bourse up,” said a stock broker who declined to be identified.

Turnover was Rs. 554 million ($ 4.19 million), less than this year’s daily average of Rs. 864 million.

Foreign investors bought a net Rs. 20.4 million worth of shares, extending the net foreign inflow this year to Rs. 28.42 billion.

The rupee closed a tad firmer at 132.25/30 against the dollar from Wednesday’s close of 132.35/45 as banks sold dollars, dealers said.

Stock and foreign exchange markets will be closed on Friday for a Buddhist religious holiday. Normal trading will resume on Monday.