Bourse soars to 11-month high; Expolanka boosts foreign buying, turnover
Reuters: Stocks rose on Friday to a near 11-month closing high, led by financials, while a block deal in conglomerate Expolanka Holdings boosted foreign inflow to more than two-year high and turnover to its highest since June 2012.
The main stock index rose 0.15%, or 9.14 points, to 6,284.87, its highest close since 11 June.
Shares in Expolanka Holdings Plc, which saw 30% of its stocks changing hands, ended flat at
Expolanka Holdings in a filing to the Bourse said 586 million shares were bought by S.G. Holdings Ltd., the Japan-based holding company of leading freight and logistics company Sagawa Group, at Rs. 10.70 a share.
“Expolanka trade boosted the market, while others ran on earning expectations in the low interest-rate regime,” a stockbroker said on condition of anonymity. “Foreign investors coming in is also a good indication.”
After the market close, the Expolanka in a disclosure said S.G. Holdings would make a mandatory offer.
Expolanka accounted for 90.3% of the day’s turnover of Rs. 7.15 billion ($ 54.8 million), the highest since 26 June 2012, and well above this year’s daily average of Rs. 1.04 billion.
Foreign investors were net buyers of Rs. 6.28 billion worth of stocks on Friday, the highest inflow since 16 March 2012 and erasing the most of the year-to-date outflow, which stood at Rs. 524.6 million on Friday.
The day’s gain boosted the market capitalisation by Rs. 3.83 billion to Rs. 2.63 trillion ($ 20.15 billion), led by large caps.
Analysts, however, said a lower credit growth has raised questions over growth and earnings amid lower consumer spending.
Despite a multi-year low interest rate regime, private sector credit grew 4.4% in February from a year earlier, the slowest expansion since May 2010. That compared with growth of 5.2% in January and 13.3% in February 2013.