Bourse booms to 2 week high ahead of X’mas

Thursday, 23 December 2010 01:19 -     - {{hitsCtrl.values.hits}}

Foreign investors turn bullish; Net inflow tops Rs. 500 m

Ahead of Christmas, the Colombo stock market yesterday enjoyed its biggest gain in two weeks spurred by a fresh round of buying especially by foreigners with locals chipping in.

The ASPI gained by 1.2% to a more-than two-week high close whilst turnover returned to a healthy Rs. 2.3 billion.

Some analysts pinned the strong rebound to return of bargain hunters whilst others attributed it to a recovery in overall investor sentiment. The latter said that following the correction in recent weeks, the valuations look more attractive and realistic hence a fresh round of buying.

The ASPI rose by 77 points to close at 6,455, a level highest since 7 December. The gain also propelled the benchmark index back to report a 90%+ year to date return, reinforcing Colombo’s status as Asia’s best performing.

However the market has fallen 10.4 percent since hitting a record high on 4 October, mainly on a liquidity shortage, and has slowed down with year-end settlements and the impending holidays.

Foreign investors were most active accounting for a net inflow of Rs. 521 million with purchases valued at Rs. 715 million and sales of Rs. 195 million. Year to date net foreign outflow is Rs. 25 billion.

Premier blue chip JKH saw 2.3 million of its shares traded including foreign buying. The share peaked to a high of Rs. 299.50 before closing at Rs. 299, up by 90 cents.

On account of re-rating of its future earnings prospects Bairaha Farms hit an all time high of Rs. 285 beating its previous best of Rs. 249.90. The stock closed at Rs. 279.40, up by Rs. 31.80 whilst a relatively high volume of 1.24 million shares changed hands.

Meanwhile Sri Lanka’s rupee closed flat 111.28/30 a dollar, as exporter dollar sales offset the dollar demand from importers, dealers said. The rupee has risen 2.75 percent in 2010.