Monday, 10 June 2013

Sri Lanka stocks recover on foreign buying, hopes of falling rate

COLOMBO, June 10 (Reuters) - Sri Lankan shares recovered on Monday from a three-week closing low hit in the previous session, gaining for the first time in six sessions on foreign buying in blue chips and hopes of interest rates falling further after the central bank comments.
The island nation's central bank head on Friday said the monetary authority is to issue guidelines to direct banks to cut lending rates and narrow the gap with the inflation rate, after it kept the key policy rates unchanged.

"Expectations of market interest rates falling further boosted sentiment," a stockbroker told on condition of anonymity. "We expect the market lending rates to fall from this week despite the central bank holding the rates flat."

The main stock index rose 0.54 percent, or 33.85 points, to 6,341.28, edging up from its lowest close since May 16.

Foreign investors were net buyers of shares for a 22nd straight session. The bourse saw a net foreign inflow of 357.6 million rupees ($2.83 million), extending the year-to-date inflows to 15.96 billion rupees.

They accounted for around 56.92 percent of the day's turnover of 825.9 million rupees, less than this year's daily average of 1.04 billion rupees.

Shares in conglomerate John Keells Holdings rose 2.94 percent to 272.80 rupees.

The rupee ended weaker at 126.55/60 per dollar from Friday's close of 126.45/50 on demand for greenbacks from importers, dealers said.

($1 = 126.3500 Sri Lanka rupees)

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Subhranshu Sahu)

Quote for the day

"The third-rate mind is only happy when it is thinking with the majority. The second-rate mind is only happy when it is thinking with the minority. The first-rate mind is only happy when it is thinking." - A. A. Milne

10-Jun-2013 CSE Trade Summary

Crossings - 10/06/2013 and Top 10 Contributors to Change ASPI

Following Stocks Reached New Low on 10/06/2013