Wednesday 22 January 2014

Sri Lankan shares hit 5-mth closing high on expectations of more foreign fund inflows

COLOMBO, Jan 22 (Reuters) - Sri Lankan shares closed at their highest level in more than five months on Wednesday amid high turnover and expectations of more foreign fund inflows after an investor roadshow in Singapore earlier this week boosted sentiment. 

The main stock index jumped 0.96 percent, or 59.13 points, to 6,212.67, its highest close since Aug. 19. 

Officials from the Colombo Stock Exchange and the Securities and Exchange Commission, along with some top company officials and brokers, were in Singapore for a roadshow on Monday to attract more foreign funds. 

"The market is confident of more foreign investments into stocks from Singapore," a stockbroker said. 

"The sentiment is positive with low interest rates, and retail investors are also slowly coming into the market." 

Shares in market conglomerate John Keells Holdings gained 1 percent at 249.50 rupees. 

The market has gained 4.5 percent in the last 10 sessions, which analysts attributed to the central bank's interest rate cut on Jan. 2 and the recent fall in T-bill yields. 

Yields in T-bills were almost flat at a weekly auction on Wednesday at their more than two-year low. 

The index has been in an overbought region since Jan. 7, Thomson Reuters data showed. 

It has risen 5.07 percent so far this year following a 4.8 percent gain in 2013 after having fallen in the previous two years. 

The day's turnover was 1.4 billion rupees ($10.70 million), more than last year's daily average of about 828.4 million rupees. 

Foreign investors were net buyers of 290.7 million rupees worth of shares, extending the year-to-date net inflow to 974.7 million rupees. 

They had bought 22.88 billion rupees of stocks last year. 

($1 = 130.8000 Sri Lanka rupees) 

(Reporting by Shihar Aneez; Editing by Subhranshu Sahu)
http://uk.reuters.com/

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