Stocks end steady; CB rate move, foreign buying boost sentiment

Saturday, 24 June 2017 01:01 - - {{hitsCtrl.values.hits}}

Reuters: Shares closed little changed on Friday, but sentiment was positive as the Central Bank kept key policy rates steady and as foreign investors bought diversified shares such as Hemas Holdings Plc and John Keells Holdings.

The banking regulator said the current monetary policy, which was in line with forecasts, was appropriate as it expected the economy to recover in the second half of the year.

The Colombo stock index ended 0.01% firmer at 6,715.33, but fell 0.05% on week.

“Unchanged policy rates could be one reason for the positive and healthy atmosphere that was there today,” said Dimantha Mathew, Head of Research, First Capital Holdings PLC.

“It was a very active day with all retail, high net worth institutional and foreign investors trading in the market.”

Turnover was Rs. 2.7 billion ($17.64 million), nearly three times this year’s daily average of Rs. 921.1 million.

Foreign investors net bought Rs. 257.7 million ($1.68 million) worth of shares, extending the year-to-date net foreign inflow to Rs. 21.1 billion worth of equities.

Shares of conglomerate John Keells ended 1.2% firmer, while Ceylinco Insurance Plc rose 6.7% and Hemas Holdings closed up 1.9%.

The markets will be closed on Monday for Id-Ul-Fitr or the Ramzan Festival Day. Normal trading will resume on Tuesday.

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