Sri Lanka stocks at near 5-mth high on large caps, foreign buying

COLOMBO, Jan 7 (Reuters) - Sri Lankan stocks gained to a near 5-month high led by large caps and banks as active local institutional investors and foreigners bought in risky assets, and analysts said the central bank's rate cut had been helping the positive sentiment. 

The main stock index rose 0.54 percent, or 32.08 points, to 5,977.07, its highest close since Aug. 22 last. 

"Institutional appetite ruled the day's trading session with a healthy turnover level," TKS Securities said in a note. 

Foreign investors bought 117.8 million rupees ($901,000)worth of shares on Tuesday after buying a net 22.88 billion rupees worth of stocks last year, compared with a record 38.68 billion rupees net foreign inflow in 2011. 

Analysts said the bourse was sustaining its upward trend and the central bank's rate cut had helped boost the sentiment. 

The central bank slashed the standing lending facility rate or reverse repurchase rate by 50 basis points to a multi-year low of 8.00 percent on Thursday, in a move to reduce commercial banks' interest rate spreads. 

The day's turnover was 716.2 million rupees, less than last year's daily average of about 828.4 million rupees. Shares in Ceylon Tobacco Company PLC gained 1 percent to 1198.20 rupees, while Commercial bank of Ceylon PLC rose 1.65 percent 122.90 rupees. 

The index gained 4.8 percent in 2013 after losses in the previous two years, giving a return of 2.18 percent in dollar terms. 

Many investors locked their funds in risk-free debentures instead of risky assets due to a sluggish bourse amid falling interest rates. 

($1 = 130.7500 Sri Lanka rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Gopakumar Warrier)

Source: http://in.reuters.com

Sri Lanka stocks close up 0.5-pct

Jan 07, 2014 (LBO) – Sri Lanka stocks end 0.54 percent higher Tuesday with banking and tobacco stocks gaining, brokers said.

The Colombo benchmark All Share Price Index closed 32.08 points higher at 5,977.07, up 0.54 percent. The S&P SL20 closed 19.21 points higher at 3,300.45, up 0.59 percent.

Turnover was 716.25 million rupees, up from 462.20 million rupees a day earlier, with stocks of 75 firms closing in the red against 115 gainers.

HNB closed 1.80 rupees higher at 149.80 rupees with off market transactions of 228.11 million rupees contributing to 32 percent of total turnover today.

Expolanka Holdings closed 10 cents higher at 8.10 rupees, attracting most number of trades during the day.

Foreigners bought 263 million rupees worth shares while selling 145 million rupees of shares.

Ceylon Tobacco Company closed 11.90 rupees higher at 1,198.20 rupees and Commercial Bank closed 2.00 rupees higher at 122.90 rupees, contributing most to the index gain.

Sri Lanka Telecom closed 80 cents higher at 37.60 rupees and A I A Insurance closed 30.20 rupees higher at 285.00 rupees.

Cargills Ceylon closed 4.80 rupees lower at 143.20 rupees and JKH closed 30 cents higher at 227.80 rupees.

JKH’s W0022 warrants closed 4.30 rupees higher at 84.90 rupees and its W0023 warrants closed 4.60 rupees higher at 93.20 rupees.

Nestle Lanka closed flat at 2,115.00 rupees and Distilleries also closed flat at 195.00 rupees.


Ceylinco Insurance closed 23.40 rupees higher at 1,300.00 rupees and Bukit Darah closed 80 cents higher at 615.80 rupees.

Aitken Spence closed 80 cents higher at 103.90 rupees and Carson Cumberbatch closed flat at 357.00 rupees.

Asian Hotels and Properties closed 40 cents lower at 64.10 rupees and Commercial Leasing and Finance closed flat at 3.90 rupees.

DFCC closed 80 cents higher at 134.80 rupees and Lanka Orix Leasing Company closed 10 cents higher at 72.00 rupees.

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