Sri Lanka stocks rise to near 5-month high on banks; foreigners sell

COLOMBO, Jan 10 (Reuters) - Sri Lankan stocks rose for a fourth straight session to hit a near five-month high on Friday, led by financials on hopes of consolidation in the sector, while foreign investors sold risky assets on a net basis in an overbought market. 

The main stock index gained 0.23 percent, or 13.80 points, to end at 6,083.14, its highest close since Aug. 22. It has gained 2.32 percent in the last four sessions, with the index in an overbought region. 

"Investors believe banks and financial shares will gain following the central bank's direction for mergers," a stockbroker said on condition of anonymity. 

Shares in DFCC Bank PLC rose 6.06 percent to 150.60 rupees, while National Development Bank PLC gained 4.34 percent to 180.50 rupees. 

In its financial and monetary policy announcement for 2014, the central bank revealed plans to merge banks and non-banking financial firms to strengthen financial stability. 

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. 

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 last year due to a sluggish bourse and falling interest rates. 

The day's turnover was 1.38 billion rupees ($10.6 million), surpassing last year's daily average of about 828.4 million rupees. 

Foreign investors were net sellers for the first time in six sessions, selling 72.04 million rupees worth of shares on Friday. 

But they have net bought 97.8 million rupees of shares so far this year. Offshore investors bought a net 22.88 billion rupees worth of stocks last year. 

($1 = 130.7000 Sri Lanka rupees) 

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

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Sri Lanka stocks end higher

Jan 10, 2014 (LBO) – Sri Lanka stocks close up 0.23 percent for the fourth consecutive day with banking and property stocks gaining, brokers said.

The Colombo benchmark All Share Price Index closed 13.80 points higher at 6,083.14, up 0.23 percent. The S&P SL20 closed 22.12 points higher at 3,384.51, up 0.66 percent.

Turnover was 1.38 billion rupees, down from 1.57 billion rupees a day earlier, with stocks of 69 firms closing in the red against 123 gainers.

Chevron Lubricants closed 1.00 rupee higher at 274.50 rupees with three off market transactions totaling 492.84 million rupees contributing to 36 percent of the total turnover today.

The Finance Company closed 40 cents higher at 12.70 rupees, attracting most number of trades during the day.

Foreigners bought 579 million rupees worth shares while selling 651 million rupees of shares.

DFCC closed 8.60 rupees higher at 150.60 rupees and Asian Hotels and Properties closed 2.90 rupees higher at 67.90 rupees, contributing most to the index gain.

Commercial Leasing and Finance closed 20 cents higher at 4.20 rupees and NDB closed 7.50 rupees higher at 180.50 rupees.

Commercial Bank closed 1.30 rupees higher at 126.30 rupees and Ceylinco Insurance closed flat at 1,206.50 rupees.

Ceylon Tobacco Company closed 29.50 rupees lower at 1,190.00 rupees and Carson Cumberbatch closed 14.90 rupees lower at 355.00 rupees.

Nestle Lanka closed 40.00 rupees lower at 2,126.80 rupees and JKH closed 70 cents lower at 231.80 rupees.

JKH’s W0022 warrants closed 10 cents lower at 85.00 rupees and its W0023 warrants closed 2.10 rupees lower at 90.00 rupees.

Lion Brewery closed 6.90 rupees lower at 368.00 rupees and Cargills Ceylon closed 3.50 rupees higher at 148.00 rupees.

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

Lanka Orix Leasing Company closed 50 cents lower at 71.50 rupees and Sri Lanka Telecom closed flat at 37.10 rupees.

Aitken Spence closed 1.40 rupees higher at 106.20 rupees and Aitken Spence Hotel Holdings ended up 1.00 rupee at 70.00 rupees.
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