Tuesday 11 November 2014

Sri Lankan bourse near 3-1/2-year high on banks

Nov 11 (Reuters) - Sri Lankan stocks ended up on Tuesday, hovering near 3-1/2-year high hit last week as investors picked up banking shares, while continued foreign buying, low interest rates and better earnings expectations kept investor appetite for risky assets intact.

Sri Lanka's main stock index closed 0.13 percent, or 9.34 points, up at 7,412.72, near its highest closing level since May 31, 2011 hit on Friday.

Shares in Commercial Leasing & Finance Plc, which led the overall gain, rose 4.55 percent to 4.60 rupees.

Shares in top mobile phone operator Dialog Axiata Plc , which reported a 15.6 percent jump in third-quarter net profit last week, rose 0.81 percent to 12.50 rupees.

Shares in Overseas Realty (Ceylon) Plc rose 3.97 percent to 28.80 rupees.

Conglomerate John Keells Holdings (JKH) Plc fell 0.35 percent to 258 rupees, while Lanka ORIX Leasing Co Plc (LOLC) fell 2.27 percent to 86 rupees.

"Gains in Commercial Leasing and Overseas Realty offset negative pressure from JKH and LOLC which helped the overall index. Market turnover continued to fall although net foreign inflow strengthened mainly due to a significant decline in foreign sales," First Capital Equities (Pvt) Ltd said in a note to investors.

Foreign investors bought a net 684.4 million rupees ($5.23 million) worth of shares, extending the net foreign inflow so far this year to 16.56 billion rupees, exchange data showed.

Tuesday's turnover was 1.64 billion rupees, more than this year's daily average of 1.40 billion rupees.

Analysts expect trading to be choppy in the near term due to the revised presidential poll schedule in January and a possible bottoming out of interest rates.

The country's central bank has kept key policy rates steady for a ninth straight month, saying private sector credit growth was picking up and long-term lending rates were adjusting downwards. 

($1 = 130.8500 Sri Lankan rupee) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Anand Basu)

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