Bourse rises to 3-week top on rising banks

Saturday, 1 November 2014 00:47 - - {{hitsCtrl.values.hits}}

Reuters: Stocks rose for a seventh straight session Friday to hit a three-week high, led by banks and foreign investors as corporate earnings and lower rates helped lift sentiment. Sri Lanka’s main stock index ended up 0.44%, or 32.40 points, at 7,326.81, its highest close since 9 October. “There was a lot of buying interest. Investors are expecting good earnings and heavy trading was seen mostly in blue-chips,” said Dimantha Mathew, Manager, Research at First Capital Equities Ltd. “A lot of foreign interest was seen in banking shares, expecting credit growth to pick up in a low interest rate regime.” Net foreign inflows on Friday touched Rs. 1.68 billion ($12.85 million), its highest since 9 May. The Bourse has seen net foreign inflows of Rs. 14.77 billion so far this year, exchange data showed. The day’s turnover was Rs. 3.81 billion, its highest since 3 October and well above this year’s daily average of Rs. 1.36 billion. Top-listed lender Commercial Bank of Ceylon Plc led the day’s gains with a rise of 2.35% to Rs. 165.8 and DFCC Bank Plc added 3.34% to Rs. 228.70. Analysts expect trading to be choppy in the near-term due to the revised presidential poll schedule in January and a possible bottoming out of interest rates. Sri Lanka’s Central Bank on 20 September kept key policy rates steady for a ninth straight month, saying private sector credit growth was picking up and long-term lending rates were adjusting downwards. President Mahinda Rajapaksa will seek an early re-election in January, seeking to pre-empt any decline in support after nearly nine years in power.

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