Bourse recoups early losses, ends firm

Wednesday, 13 August 2014 00:04 - - {{hitsCtrl.values.hits}}

Net foreign inflow tops Rs. 12 b mark

Reuters: Stocks recovered on Tuesday to end a tad firmer around a three-year closing high, led by large caps such as Ceylon Tobacco Company Plc, as lower interest rates and buying by foreign funds helped investors bet on risky assets. Stockbrokers, however, expect a correction during the week, in an overbought market, after the index gained for a sixth straight session. The main stock index, which fell as much as 0.57% during the early trade, closed 0.07%, or 4.98 points firmer at 6,947.90, its highest close since 12 September 2011. It has risen 17.51% so far this year. “The market rebounded during the latter part of the day with gains in big cap illiquid shares,” said a stockbroker requesting not to be named. “A correction is expected. But the market will break the 7,000 level.” Analysts said hopes of a policy rate cut on Friday and further fall in interest rates helped boost turnover, and that better corporate earnings and continued foreign buying too have helped maintain sentiment. Turnover was Rs. 1.2 billion ($ 9.22 million), more than this year’s daily average of Rs. 1.11 billion. Foreign investors bought a net Rs. 164.5 million worth of shares on Tuesday, extending the year-to-date net foreign inflow to Rs. 12.29 billion. Ceylon Tobacco Company Plc, which led the overall index gain, added 4.15% to Rs. 1,197.70, while Ceylon Cold Stores Plc gained 3.92% to Rs. 220.20. Profit taking dragged the market heavyweight John Keells Holdings Plc down 0.63% to Rs. 238, analysts said.

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