Bourse soars by 2.6% on blue chips, foreign buying

Saturday, 15 September 2012 01:22 - - {{hitsCtrl.values.hits}}

Reuters: The stock market jumped 2.6 per cent in healthy volume on Friday to the highest level in eight months, with institutional and foreign investors buying banks and diversified shares.

The Colombo Stock Exchange’s main index ended 2.59 per cent, or 149.68 points, up at 5,926.90, its highest close since 13 January. The rise helped boost market capitalisation by Rs. 57.27 billion.

“Continuous foreign interest and institutional participation are keeping the market rising and we expect a healthy correction after the index hits 6,000 points,” said a stockbroker, who declined to be identified.

The index has risen 18.2 per cent in the last 14 sessions on hopes that a new Securities and Exchange Commission Head, Nalaka Godahewa, will produce ideas to revive the market, down 2.43 per cent since the beginning of the year.

Turnover on Friday was Rs. 3.23 billion ($ 24.50 million), the highest since 26 June and more than three times the year’s daily average of Rs. 908.6 million.

The Bourse saw a net foreign inflow of Rs. 259 million, extending the net inflow this year to Rs. 29.46 billion.

The rupee closed weaker at 132.10/20 to the US dollar compared with Thursday’s close of 131.98/132.05 on strong importer demand for dollars, dealers said. ($ 1 = 131.8500 Sri Lanka Rupees)