Stocks at over two-week high on foreign buying

Wednesday, 13 March 2013 01:38 - - {{hitsCtrl.values.hits}}

Reuters: Shares edged up on Tuesday to a more than two-week high as foreign investors brought select blue chips like market heavyweight John Keells Holding.

Local investors stayed on the sidelines after the Central Bank held rates steady, brokers said.

The main share index rose 0.48%, or 27.01 points, to 5,704.32, its highest since 22 February.

Foreign investors were net buyers of Rs. 320.98 million, extending year-to-date foreign inflows to Rs. 3.10 billion.

Shares in John Keells Holdings rose 1.19% to Rs. 237.50, their highest close since 13 October 2010. The biggest listed lender, Commercial Bank of Ceylon, rose 1.48% to a one-month high of Rs. 110.00.

“Foreigners see value in these select blue chips. But the interest rate is playing a major role in local investors’ decision making,” said a stockbroker on condition of anonymity.

The Central Bank last Friday left policy rates unchanged for a third straight month, saying inflation was expected to ease and reach more favourable levels by the end of the year.

The day’s turnover was Rs. 671.11 million ($ 5.30 million), well below this year’s daily average of Rs. 1.06 billion.

The rupee firmed to a one-month closing high of 126.18/28 to the dollar compared with Monday’s 126.45/55.