Bourse gains to near 8-week high on stability hopes, earnings

Friday, 24 July 2015 00:30 - - {{hitsCtrl.values.hits}}

Reuters: Shares closed at their highest level in about eight weeks on Thursday on strong foreign inflows for a second session as hopes of political stability after 17 August Parliamentary polls and better earnings lifted sentiment, brokers said.

The main stock index ended 0.18%, or 12.99 points up at 7,212.62, its highest since 29 May.

Turnover was at Rs. 2.21 billion ($16.5 million), boosted by foreign buying. This was the highest turnover since 3 July and more than double of this year’s daily average of Rs. 1.06 billion.

Foreign investors were net buyers of Rs. 930.7 million on Thursday, but they have been net sellers of Rs. 478.4 million worth of shares so far this year.

“Investors are buying because they are confident of getting a stable government after the elections,” Danushka Samarasinghe, research head at Softlogic Stockbrokers said.

Samarasinghe expects Sri Lankan companies to post strong results this quarter.

Analysts also said hopes over political stability after the 17 August Parliament election also helped sentiment. They expect next month’s election to help strengthen President Maithripala Sirisena’s political position.

Conglomerate John Keells Holdings Plc rose 0.64%, while Hemas Holdings Plc rose 4.12%, pushing the overall index up.

Rupee ends steady ahead of policy review

Reuters: The rupee ended steady in dull trade on Thursday ahead of the Central Bank’s policy review on Friday and as a State-owned bank maintained its dollar-selling rate at 133.70, dealers said.

There was, however, downward pressure on the rupee due to demand for the greenback from importers, dealers said.

The spot rupee closed steady for the second straight session at 133.70/80 per dollar after the State-run bank cut the local currency’s peg against the dollar by 10 cents on Tuesday to allow the exchange rate to appreciate.

The Central Bank is expected to keep its key policy interest rates unchanged at record lows on Friday, a Reuters poll showed, ahead of a parliamentary polls in August.

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