Bourse gain for second session; volatility seen ahead
Thursday, 16 October 2014 00:10
Reuters: Stocks gained for a second straight session on Wednesday, recovering from a near four-week closing low hit early this week, as banks rose in thin volume.
However, stock brokers expect volatility in the near future amid worries about early presidential polls and a mixed signal on interest rates.
President Mahinda Rajapaksa could hold a snap election in January, nearly two years before he has to, a close ally said, amid signs his popularity is fading among people who criticise his party for abusing power.
Yields on 364-day T-bills rose 11 basis points to 6%, the first rise since 20 December 2013.
Local investors have been buying stocks as they have no other options in a multi-year low interest rate regime.
Sri Lanka’s main stock index gained 1.16%, or 83.36 points, to 7,288.83 after marking its lowest closing level since 17 September on Monday.
Commercial Bank of Ceylon Plc led gains with a 3.88% rise, while conglomerate John Keells Holdings Plc rose 1.13%.
The day’s turnover was Rs. 1.6 billion ($12.25 million), more than this year’s daily average of over Rs. 1.36 billion.
Foreign investors bought Rs. 201.3 million worth of shares on Wednesday, extending the year-to-date net foreign inflow to Rs. 9.54 billion, exchange data showed.