Bourse at near 2-week high; Monetary Policy awaited

Thursday, 5 December 2013 00:05 - - {{hitsCtrl.values.hits}}

Reuters: The Bourse hit a near two-week high on Wednesday, led by banking shares with block deals boosting the day’s turnover, but wary investors waited for clarity on earnings and interest rates ahead of the monetary policy rate decision early next week. The main stock index rose 0.17%, or 9.8 points, to 5,782.92. This was the market’s highest close since 22 November. “There were some local institutional activities, but retail investors were not active,” said a stockbroker asking not to be named. Analysts also said investors are waiting for the policy rate decision for direction and earnings amid dented confidence after tax hikes announced for the 2014 Budget. The market has been in a downward trend after the September-quarter earnings pointed to slower growth. Investors are worried that new taxes announced in the Budget last week could hit consumer spending and thus revenues of listed firms. Research published by John Keells Stock Brokers showed cumulative September-quarter earnings reported by 263 companies out of 288 listed firms fell 28.1% year-on-year. The day’s turnover was Rs. 794.5 million ($6.1 million), boosted by block trades in Capital Trust, which accounted for 24% of the day’s turnover. This year’s daily average turnover is around Rs. 845.5 million. Shares in large-cap Ceylon Tobacco Co rose 0.99% to Rs. 1,115, while National Development Bank rose 4.51% to Rs. 160. Foreign investors were net buyers of Rs. 55 million worth of shares, extending year-to-date net inflows to Rs. 22.46 billion.

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