Stock market at new record on earnings, low rate hopes

Saturday, 22 January 2011 00:51 - - {{hitsCtrl.values.hits}}

COLOMBO, (Reuters) - Sri Lanka’s bourse hit a record high on Friday on hopes of better earning in the December quarter and a further cut in lending rates, while the rupee edged down on importer dollar demand.

The island’s main share index <.CSE> rose 1.15, hitting a record intraday high of 7,275.79, surpassing its previous high of 7,204.23 from Oct 4. It closed 0.85 percent or 60.91 points up at 7,254.01 a record high for the second straight day. It hit a record closing high of 7,193.10 on Thursday.

It has been Asia’s best performer with a 9.32 percent gain so far in 2011 after being the top performer last year with a 96 percent return. Turnover was 4.1 billion rupees ($37 million), nearly two times last year’s daily average of 2.4 billion. Foreign investors were net sellers of a net 247.9 million rupees’ worth shares on Friday and they have sold a net 2.02 billion rupees so far this year after selling a record net 26.4 billion rupees in 2010.

The bourse is trading at a forward price-to-earnings (P/E )ratio of 18, highest among emerging markets, compared with 13 in Asian markets and 12 in global emerging markets, Thomson Reuters StarMine data showed. Its 14-day relative strength index is at 86, beyond the overbought limit of 70.

The traded share volume was 213.3 million against five-day average of 166.2 million. Last year’s daily average volume was 69.2 million.

The Rupee <LKR=> closed down at 111.00/03 a dollar from Thursday’s 110.92/95 on importer dollar demand, traders said.

Discover Kapruka, the leading online shopping platform in Sri Lanka, where you can conveniently send Gifts and Flowers to your loved ones for any event including Valentine ’s Day. Explore a wide range of popular Shopping Categories on Kapruka, including Toys, Groceries, Electronics, Birthday Cakes, Fruits, Chocolates, Flower Bouquets, Clothing, Watches, Lingerie, Gift Sets and Jewellery. Also if you’re interested in selling with Kapruka, Partner Central by Kapruka is the best solution to start with. Moreover, through Kapruka Global Shop, you can also enjoy the convenience of purchasing products from renowned platforms like Amazon and eBay and have them delivered to Sri Lanka.