Saturday, January 19, 2013

Bourse steady amid foreign outflow

Reuters:  The stock market ended largely unchanged at a three-month high on Friday as blue chip purchases by institutional and high net worth investors were offset by retail profit taking and foreign selling.

 Brokers expect declining interest rates to keep the bourse rising next week.

The main share index closed 0.01 per cent, or 0.49 points, at 5,875.77, its highest close since 3 October.

“The outlook is very positive as interest rates are expected to fall further due to excess liquidity in the money market,” a stockbroker said on condition of anonymity.

 The Central Bank on Thursday left key policy rates steady, as expected, after a surprise cut last month. The bank said it expected inflation to moderate soon.

 Yields in Government securities have been falling due to foreign inflows into Treasury bills and bonds in recent weeks.

 Turnover on Friday was Rs. 789.7 million ($ 6.23 million). Foreign investors were net sellers of Rs. 153.95 million worth of shares, but have been net buyers of Rs. 481.13 million this year. Sri Lanka last year enjoyed a record inflow of Rs. 38.63 billion.

 The rupee closed marginally firmer at 126.55/60 to the dollar from Thursday’s close of 126.65/70, as banks sold dollars, dealers said.

source - www.ft.lk

No comments: