Bourse soars to more than 3-year closing high

Saturday, 13 September 2014 01:25 - - {{hitsCtrl.values.hits}}

Reuters: Sri Lankan stocks hit a more than three-year closing high on Friday, led by select shares such as Chevron Lubricants Lanka Plc, as low interest rates and continued foreign buying into risky assets buoyed sentiment, while low retail participation pushed the index sideways. The main stock index rose 0.27%, or 19.43 points, to 7,218.68, its highest close since 10 June 2011, boosting market capitalisation by Rs. 8.2 billion ($ 62.94 million) to Rs. 3.05 trillion. “Today the market was bit slow with low retail participation. They keep on investing while taking profits,” First Capital Equities Ltd. research analyst Reshan Wediwardana said. Brokers said the market would continue its bull run with foreign buying, despite profit-taking in some counters by retail investors. The index has gained 22.09% so far this year. The bourse has been in an overbought region since July. The Relative Strength Index, a momentum indicator tracked by chartists, was at 87.190 on Friday, Thomson Reuters data showed. Stocks are deemed “overbought” above the 70-mark, signalling a reversal in the near term. Chevron Lubricants led gains with a rise of 4.01%, while Seylan Bank Plc rose 5.16%. Market heavyweight John Keells Holdings Plc rose 0.19% to Rs. 259.50. Exchange turnover was Rs. 1.83 billion ($ 14.05 million), more than this year’s daily average of Rs. 1.24 billion. Foreign investors were net buyers of shares worth Rs. 70.9 million, extending the year-to-date net foreign inflow to Rs. 10.45 billion.

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