Market sentiment gets boost; Bourse up

Tuesday, 13 May 2014 00:01 - - {{hitsCtrl.values.hits}}

REUTERS: Stocks rose on Monday to an 11-month closing high, led by oil palms and financials, while market sentiment was boosted by a lower interest rate regime and foreign inflows. Stockbrokers said many investors have been compelled to return to the stock market due to multi-year low interest rates, which has made fixed income assets less attractive. The main stock index rose 0.29%, or 18.29 points, to 6,303.16, its highest close since 11 June. The gains were led by Bukit Darah PLC, which rose 4.76% to Rs. 680. Foreign investors, on a buying streak for the last six sessions, were net buyers of Rs. 121.2 million of stocks on Monday. They have been net sellers of Rs. 403.4 million so far this year. The day’s turnover was Rs. 866.5 million, below this year’s daily average of Rs. 1.04 billion. Analysts, however, said lower credit growth has raised questions around growth and earnings amid lower consumer spending. Despite a multi-year low interest rate regime, the private sector credit grew just 4.4% in February from a year earlier, the slowest expansion since May 2010. That compared with a growth of 5.2% in January and 13.3% in February 2013.

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