Foreign buying boosts stock market turnover

Thursday, 30 October 2014 00:29 - - {{hitsCtrl.values.hits}}

Reuters: Sri Lankan stocks extended their winning streak to a fifth session on Wednesday and ended at a two-week closing high, helped by buying in banking and telecommunication shares, while foreign-investor interest boosted sentiment. Sri Lanka’s main stock index ended up 0.54%, or 38.78 points, at 7,265.90, its highest close since 15 October. “Despite some volatility, the market was largely on an upward path with positive contributions from banking sector counters,” said Reshan Wediwardana, research analyst at First Capital Equities Ltd. Large parcel trades helped boost market turnover, while strong foreign buying in John Keells Holdings Plc and Dialog Axiata Plc contributed to the day’s net foreign inflows. The market saw net foreign inflows of 580.2 million rupees ($ 4.44 million) on Wednesday, extending the year-to-date net foreign inflows to 12.33 billion rupees worth of shares, exchange data showed. Analysts said retail participation was poor due to the lower-than-expected stimulus in the budget, while the market awaited further clarity. Rajapaksa, also the country’s finance minister, unveiled a budget that sought to trim value-added tax and cut the deficit while providing a range of handouts, mainly for rural communities. The day’s turnover was 2.2 billion rupees, well above this year’s daily average of 1.36 billion rupees. The gains were led by Sri Lanka Telecom Plc, which rose 0.40% to 50.20 rupees. John Keells gained 0.28%, while Dialog added 0.81%. Stockbrokers said trading in local shares may be volatile in the near-term due to the revised presidential poll schedule and a possible bottoming out of interest rates.

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