(Reuters) - Sri Lankan stocks rose for the second straight session on Wednesday to hit one-week highs, as lower interest rate helped boost local investor sentiment, while foreign investors bought market heavyweight John Keells Holdings Plc.
The main stock index rose 0.17 percent, or 10.68 points, to close at 6,321.55, its highest since June 17.
Analysts said the market would move sideways in the short term with lower risk due to lower interest rates.
Yields in treasury bills edged down further on Wednesday at a weekly auction.
Market heavyweight John Keells Holdings, which ended 0.95 percent firmer, accounted for 34.8 percent of the day's turnover.
The bourse saw a net foreign inflow of 138.7 million rupees ($1.07 million) worth of stocks on Wednesday, extending the net foreign inflows so far this year to 5.97 billion rupees.
Turnover was 705.3 million rupees, less than this year's daily average of 997.1 million rupees.
Analysts said investors were 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 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. ($1 = 130.2000 Sri Lankan Rupees) (Reporting by Ranga Sirilal and Shihar Aneez; Editing by Anand Basu)
The main stock index rose 0.17 percent, or 10.68 points, to close at 6,321.55, its highest since June 17.
Analysts said the market would move sideways in the short term with lower risk due to lower interest rates.
Yields in treasury bills edged down further on Wednesday at a weekly auction.
Market heavyweight John Keells Holdings, which ended 0.95 percent firmer, accounted for 34.8 percent of the day's turnover.
The bourse saw a net foreign inflow of 138.7 million rupees ($1.07 million) worth of stocks on Wednesday, extending the net foreign inflows so far this year to 5.97 billion rupees.
Turnover was 705.3 million rupees, less than this year's daily average of 997.1 million rupees.
Analysts said investors were 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 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. ($1 = 130.2000 Sri Lankan Rupees) (Reporting by Ranga Sirilal and Shihar Aneez; Editing by Anand Basu)
No comments:
Post a Comment