Bourse lights up for Vesak

Friday, 24 May 2013 00:00 - - {{hitsCtrl.values.hits}}

Reuters: Shares climbed to a 19-month high on Thursday, bucking the regional trend, as investors encouraged by an interest rate cut this month piled into large caps.

The main stock index rose 0.42%, or 27.23 points, to close at 6,488.85, its highest since 14 October 2011.

The market shut early to mark a Buddhist religious holiday. Both stocks and currency markets will remain closed on Friday.

Foreign investors were net buyers of shares worth of Rs. 218.8 million, extending net foreign inflows this year to Rs. 13.1 billion.

Shares in Ceylon Tobacco Company PLC rose 4.57%. Distillers Sri Lanka was up 1.94%.

The market’s 14-day Relative Strength Index (RSI) was in over-bought territory of 86.801 on Thursday and has been above the upper neutral level of 70 since 16 April, Thomson Reuters data showed.

The stock index has gained 4.01% since the central bank cut key policy rates by 50 basis points on 10 May, following some of its regional peers, to boost economic growth amid subdued demand.

The turnover was Rs. 556 million ($ 4.40 million) on Thursday, less than this year’s daily average of Rs. 1.05 billion.

The rupee ended barely changed at 126.30/35 per dollar from Wednesday’s close.