Bourse at more than 43-month high

Tuesday, 18 November 2014 01:40 - - {{hitsCtrl.values.hits}}

Reuters: Stocks rose for a fifth straight session on Monday to 43-month highs, led by beverage and telecom shares a day ahead of the Central Bank’s monetary policy announcement, when it is expected to hold rates. Continued foreign buying, low interest rates and hopes for better earnings from companies helped boost investor sentiment. Sri Lanka’s main stock index rose 0.31%, or 22.91 points, to 7,524.00, its highest closing level since 18 April 2011. “Today, there was lot more retail interest. A lot of funds are getting into the equity market. That is why retail interest is increasing,” said Dimantha Mathew, Manager, Research at First Capital Equities Ltd. Monday’s turnover was Rs. 2.4 billion ($18.3 million), exchange data showed, well above this year’s daily average of Rs. 1.43 billion.

Nimal back in the market High networth investor Nimal Perera is back in the market collecting fundamentally sound stocks, the league which has ensured a credible rebound. Most analysts link the 27% year to date gain to investors focusing on fundamentally attractive stocks. Local play has been sensible rallying around Rs. 18 billion net foreign inflow. Nimal was on the buying side of Seylan which saw 1.5 million of its shares traded for Rs. 149 million yesterday bulk of it going at Rs. 95 each. Seylan closed at Rs. 99.20, up by 3.5%. It was the third largest in terms of turnover behind Dialog Rs. 340 million and Access Engineering Rs. 223 million whilst Sunshine Holdings saw Rs. 149 million turnover too. Last week according to brokers, Nimal had picked up 2 million shares of Soflogic Holdings as well as 4 million of Softlogic Capital apart from collecting further of Pan Asia Bank, in which he is the Chairman. NDB Securities said high networth and institutional interest was seen in Dialog, sunshine, Seylan, Ceylon Guardian, Central Finance and Piramal Glass. Retail interest was seen in Pan Asia Power, Sierra Cables and Renuka Agri Foods. Lanka Securities said Price appreciations in counters such as Dialog Axiata (closed at Rs. 13.20,+5.6%), Nestle Lanka (closed at Rs. 2,299.00, +7.9%) and Carson Cumberbatch (closed at Rs. 440.00, +2.6%) contributed positively contributed to index performance. It also said most of the banking counters such as DFCC Bank (Rs. 232.00, +0.7%), Sampath Bank (Rs. 243.00, +1.3%), and Nations Trust Bank (Rs. 100.50, + 2.2%) advanced during the session. Further following the release of interim financial statements, Commercial Bank (Rs. 175.00, +0.6%), Union Bank (Rs. 26.70, +2.3%), National Development Bank (Rs. 262.50, +1.4%) and HDFC Bank (Rs. 70.50, +1.6%) advanced during the day.

The Bourse has witnessed foreign inflows of Rs. 18.06 billion so far this year through Friday, exchange data showed. Foreign trading figures were not available for Monday due to some technical fault, an exchange official told Reuters. Nestle Lanka Plc rose 0.13%, leading the overall gains, while Dialog Axiata Plc added 4.80%. Access Engineering Ltd rose 5.76%. Traders said hopes for a boost in the construction businesses helped the company’s shares. The Central Bank is expected to hold its key monetary policy rates steady at their record low level on Tuesday for a tenth straight month as policymakers aim to sustain an economic rebound, a Reuters poll showed.