Sri Lanka stocks gain for 3rd session; investors advised to choose quality shares

COLOMBO, Jan 9 (Reuters) - Sri Lankan stocks rose for a third straight session to a near five-month high on Thursday with turnover boosted by foreign buying in risky assets, while analysts asked investors to focus on quality shares for double-digit returns. 

The main stock index gained 0.25 percent, or 14.87 points, to end at 6,069.34, its highest close since Aug. 22. 

It has gained more than 2 percent in the last three sessions, with the index now in an overbought region. 

Analysts said the central bank's interest rate cut last week and the recent fall in T-bill yields had boosted sentiment and helped sustain the gain., First Capital Equities advised investors in a note against seeking speculative positions and to focus on quality companies that would generate double-digit returns over a reasonable investment horizon. 

"Investors are advised to refrain from applying a herd mentality in the current sideways market, but use the opportunity to review their portfolios in order to ensure that their allocations continue to reflect their risk appetite, investment goals and horizon," it said. 

The CSE 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 and falling interest rates. 

The day's turnover was 1.57 billion rupees, surpassing last year's daily average of about 828.4 million rupees. Foreign buying accounted for 56 percent of the turnover. 

Foreign investors bought a net 109 million rupees ($833,000) worth of shares on Thursday, extending year-to-date foreign inflows to 169.8 million rupees. 

Offshore investors bought a net 22.88 billion rupees worth of stocks last year, while 2011 saw a record 38.68 billion rupees in net foreign inflows. 

Ceylon Tobacco Co PLC shares rose 1.09 percent to 1,219.50 rupees, while Nestle Lanka PLC gained 1.91 percent to 2,166.80 rupees. 

($1 = 130.8500 Sri Lanka rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Prateek Chatterjee)

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Sri Lanka stocks close up 0.2-pct

an 09, 2014 (LBO) – Sri Lanka stocks end 0.25 percent higher Thursday with tobacco and diversified stocks gaining, brokers said.

The Colombo benchmark All Share Price Index closed 14.87 points higher at 6,069.34, up 0.25 percent. The S&P SL20 closed 12.08 points higher at 3,362.39, up 0.36 percent.

Turnover was 1.57 billion rupees, up from 849.52 million rupees a day earlier, with stocks of 89 firms closing in the red against 100 gainers.

JKH topped the market turnover list with transactions of 170.77 million rupees contributing to 11 percent of total turnover today.

Chevron Lubricants closed 90 cents lower at 273.50 rupees with off market transactions of 391.46 million rupees contributing to 25 percent of turnover.

The Finance Company closed 10 cents higher at 12.30 rupees, attracting most number of trades during the day.

Foreigners bought 882 million rupees worth shares while selling 773 million rupees of shares.

Carson Cumberbatch closed 14.90 rupees higher at 369.90 rupees and Ceylon Tobacco Company closed 13.20 rupees higher at 1,219.50 rupees, contributing most to the index gain.

Nestle Lanka closed 40.60 rupees higher at 2,166.80 rupees and Cargills Ceylon closed 4.10 rupees lower at 144.50 rupees.

Commercial Leasing and Finance closed 20 cents higher at 4.00 rupees and JKH closed 2.50 rupees lower at 232.50 rupees.

JKH’s W0022 warrants closed 4.00 rupees lower at 85.10 rupees and its W0023 warrants closed 4.20 rupees lower at 92.10 rupees.

Distilleries closed flat at 200.00 rupees and Bukit Darah also closed flat at 620.00 rupees.

Ceylinco Insurance closed 93.50 rupees lower at 1,206.50 rupees and Lanka Orix Leasing Company closed 80 cents higher at 72.00 rupees.

Aitken Spence closed 1.20 rupees lower at 104.80 rupees and Lion Brewery closed flat at 374.90 rupees.

Sri Lanka Telecom closed 40 cents lower at 37.10 rupees and DFCC closed 1.90 rupees higher at 142.00 rupees.
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