(Reuters) - Sri Lankan stocks snapped a four-day losing streak on Tuesday, recovering from a more than one-week closing low hit on Monday, led by foreign buying in market heavyweight John Keells Holdings Plc.
The market would move sideways in the short term with lower risk due to lower interest rates, said analysts.
The main stock index rose 0.18 percent, or 11.52 points, to close at 6,310.87, edging up from its lowest close since June 11 hit on Monday. It hit a more than one-year high on June 17.
Market heavyweight John Keells Holdings, which ended 0.8 percent firmer, accounted for 35.8 percent of the day's turnover. The biggest listed lender Commercial Bank of Ceylon Plc rose 1.20 percent.
The bourse saw a net foreign inflow of 331.2 million rupees ($2.54 million) worth of stocks on Tuesday, mainly in Keells, ending two days of outflows. The net foreign inflows so far this year have reached 5.83 billion rupees.
Turnover was 874.9 million rupees, less than this year's daily average of 999.7 million rupees.
Analysts said investors are awaiting to see the impact of the recent ethnic violence and possible implications after a government spokesman said Sri Lanka bought Iran crude via third parties.
Stockbrokers said investors perceive the violence in the previous weekend that killed at least three people and left over 75 people seriously injured could hit the market and the tourism sector.
Sri Lanka's government spokesman said on Thursday the island nation has been buying Iranian crude from various countries via third parties, and avoiding Western sanctions with the understanding of the United States. The United States denied the claim.
The market has been on a rising trend since late February due to continued foreign buying and lower interest rates. It has been on a falling trend since Wednesday after the central bank held the key policy rates steady, though some had expected a rate cut.
The market would move sideways in the short term with lower risk due to lower interest rates, said analysts.
The main stock index rose 0.18 percent, or 11.52 points, to close at 6,310.87, edging up from its lowest close since June 11 hit on Monday. It hit a more than one-year high on June 17.
Market heavyweight John Keells Holdings, which ended 0.8 percent firmer, accounted for 35.8 percent of the day's turnover. The biggest listed lender Commercial Bank of Ceylon Plc rose 1.20 percent.
The bourse saw a net foreign inflow of 331.2 million rupees ($2.54 million) worth of stocks on Tuesday, mainly in Keells, ending two days of outflows. The net foreign inflows so far this year have reached 5.83 billion rupees.
Turnover was 874.9 million rupees, less than this year's daily average of 999.7 million rupees.
Analysts said investors are awaiting to see the impact of the recent ethnic violence and possible implications after a government spokesman said Sri Lanka bought Iran crude via third parties.
Stockbrokers said investors perceive the violence in the previous weekend that killed at least three people and left over 75 people seriously injured could hit the market and the tourism sector.
Sri Lanka's government spokesman said on Thursday the island nation has been buying Iranian crude from various countries via third parties, and avoiding Western sanctions with the understanding of the United States. The United States denied the claim.
The market has been on a rising trend since late February due to continued foreign buying and lower interest rates. It has been on a falling trend since Wednesday after the central bank held the key policy rates steady, though some had expected a rate cut.
($1 = 130.2000 Sri Lankan Rupees)
(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Anand Basu)
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