Tuesday, September 18, 2012

Bourse at eight-month high

Reuters: The stock market rose to an eight-month high on Monday as institutional investors bought banks, a day ahead of the Central Bank’s September policy rates decision, which the market expects to be unchanged.

The Colombo Stock Exchange’s main index ended 0.71 per cent, or 42.19 points, up at 5,969.09, its highest close since 4 January. The rise helped boost market capitalisation by Rs. 16.14 billion.

 The index has risen 19 per cent in the last 15 sessions on hopes that a new Securities and Exchange Commission Head, Nalaka Godahewa, will produce ideas to revive the market, down 1.73 per cent since the start of the year. Turnover on Monday was Rs. 1.82 billion ($ 13.78 million), more than the year’s daily average of Rs. 913.9 million.

The Bourse saw a net foreign outflow of Rs. 31.5 million, which analysts attributed to booking profits. However, foreign investors have been net buyers of Rs. 29.43 billion worth of shares so far this year.

 The rupee closed firmer at 132.00/10 to the US dollar compared with Friday’s close of 132.10/20 on exporter demand for the currency on hopes of dollar inflows after the Central Bank sold $121 million worth three-year development bond, dealers said.

source - www.ft.lk

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