Bourse at 3-month high despite continued foreign outflow

Thursday, 24 January 2013 01:29 - - {{hitsCtrl.values.hits}}

Reuters: Sri Lanka’s stock market edged up to a three-month high on Wednesday, led by banking and hotel shares, but foreign selling continued for the fourth day running.

The main share index closed 0.22%, or 12.73 points firmer, at 5,883.66, its highest close since Oct 3.

Foreign investors sold a net 239.15 million rupees ($1.89 million) worth of shares, extending the net outflow of foreign funds to 989.2 million rupees over four sessions and bringing the year-to-date foreign outflow of 354.1 million rupees.

Sri Lanka enjoyed a record foreign inflow of 38.63 billion rupees last year.

“The good thing is there is no panic in the market, though the foreign selling is continuing,” a stockbroker said on condition of anonymity.

Foreign investors mainly sold top lender Commercial Bank of Ceylon, which ended 0.19% weaker at 104 rupees.

A fall in the yields of government securities boosted local buying after the 91-day t-bill yield fell to an 11-month low at a weekly auction on Tuesday.

Turnover on Wednesday was 1.27 billion rupees ($10.02 million).

The rupee closed weaker at 127.00/20 to the dollar from Tuesday’s close of 126.75/85.