Saturday, October 8, 2011

Stocks recover from 10-wk low; telcos lead

* Laugfs boosts turnover, volumers

* Foreign inflow of 21.8 mln rupees after outflows in 12 sessions

* Rupee steady amid heavy importer demand

COLOMBO (Reuters): Sri Lanka’s stock market rebounded from a 10-week low on Friday led by telecoms, while foreign inflow for the first time in 12 sessions lifted investor sentiment.

The main share index closed 0.31 percent, or 20.99 points, firmer at 6,698.83, moving up from its lowest close since 28 July. It is still the second-best performer in Asia-Pacific behind New Zealand, with a return of 0.95 percent on the year.

Stockbrokers reported foreign buying in market. Heavyweight and top conglomerate John Keells Holdings and institutional and retail investors, who were waiting on the sidelines, also bought shares. Keells ended 1.3 percent up.            
The bourse saw net foreign buying of 21.8 million rupees, its first inflow in 12 sessions.

The island nation’s top fixed-line phone operator Sri Lanka Telecom gained 3.8 percent, while top mobile-phone firm Dialog Axiata ended 1.2 percent firmer.

Traders and analysts said investors were buying Dialog on speculation that it would buy into a local fixed-line operator.

Retail LP gas seller Laugfs Gas, which accounted for 42 percent of the day’s turnover and 22.9 percent of volume, closed 17.80 percent firmer at Rs. 48.30 on speculation that state-run Litro gas management would be handed over to it.

A Laugfs spokesman said there was no such move.

Turnover was 2.3 billion Sri Lanka rupees ($20.9 million), the highest since 30 September, and less than last year’s average of 2.4 billion and this year’s 2.7 billion.

Friday’s total volume was 90.3 million, against a five-day average of 84.9 million. The 30-day and 90-day average trading volumes were 145.9 million and 138.7 million. Last year’s daily average was 67.9 million.

The rupee closed steady at 110.18/20 per dollar for a seventh straight day, as the state bank continued dollar sales at a flat rate of Rs. 110.20 despite heavy importer dollar demand, dealers said.

Currency traders said the Central Bank’s mopping up of liquidity had created demand for local currency and, as a result, exporters and banks sold dollars to buy the rupee.

The Central Bank mopped up 24.75 billion rupees from the market on Thursday through a repo auction at 7 percent, while pumping 1.3 billion rupees into the market through its reverse repo auction at 7.25 percent, dealers said.

source -

No comments: