Bourse gains sharply; turnover at 8-month high

 

Reuters: Sri Lankan stocks ended slightly firmer on Wednesday as investors picked up banking and diversified shares while block deals pushed turnovers to an eight-month high, dealers said, while the rupee firmed as banks sold dollars.

The Colombo Stock Exchange’s main index, or all share price index (ASPI), ended 0.29%, or 17.47 points, higher at 5,943.76.

 Conglomerate Aitken Spence PLC accounted for 72% of the day’s turnover on a block deal and closed 0.39% firmer at 130 rupees a share.

“In terms of market trajectory, we expect the bourse to test the 6000 key resistance level next week although intermittent bouts of profit taking could result in temporary dislocations,” DNH Financial in Colombo said in a note to investors.

The index rose 19% in 15 sessions through to 17 September on hopes that a new Securities and Exchange Commission head would come up with ideas to revive the market, which is down 2.15% this year.

 The bourse has been overbought since 28 August, Thomson Reuters data shows. The 14-day Relative Strength Index on Wednesday was at 83.073, well above the upper neutral range of 70.

 Turnover on Wednesday was Rs. 4.26 billion ($32.51 million), the highest since 26 January and more than four times this year’s daily average of Rs. 942 million.

 The bourse saw a net foreign inflow of Rs. 278 million, extending the net foreign inflow this year to Rs. 30.63 billion.

 The rupee closed firmer at 130.90/131.00 to the dollar compared with Tuesday’s close of 131.00/05 as banks bought rupees, dealers said.

source - www.ft.lk