Bourse rebounds on CTC, JKH but foreign outflows up
Friday, 2 August 2013 03:44
Reuters: Shares jumped 1.98% on Thursday to hit a six-week high as investors bought stocks such as Ceylon Tobacco and John Keells Holdings, while block deals pushed the turnover to five-week high.
The main share index ended 1.98%, or 119.38 points, firmer at 6,156.60, its highest close since 20 June.
Shares in Ceylon Tobacco Co. touched a lifetime high of Rs. 1,240 on expectations that the company would raise its cigarette prices by a higher amount to offset the recent hike in taxes. They closed at Rs. 1,200.80.
Sri Lanka increased some import taxes and excise duties on Thursday, a move analysts said is an attempt by the Government to shore up its revenue base as a slowing economy and falling imports hamper its efforts to cut its budget deficit. Shares in John Keells Holdings Plc rose 2.04% to Rs. 265.70. Foreign investors were net sellers of Rs. 441.9 million ($ 3.36 million) worth of shares, extending this weekâ€™s net outflow to Rs. 1.09 billion. But they have been net buyers of Rs. 15.86 billion of shares so far this year.
Analysts said despite the Central Bankâ€™s easing of policy measures, concerns over the weakening rupee and high lending rates had dented sentiment, even as investors waited for direction. The turnover was Rs. 1.55 million, the highest since 26 June, well above this yearâ€™s daily average of about Rs. 941.3 million.