Sri Lanka stocks at over 3-year high on banks, diversified shares

(Reuters) - Sri Lankan stocks climbed to their highest close in more than three years on Thursday, led by banking and diversified shares as investors had little option other than buying into risky assets because of lower interest rates.

The main stock index ended up 0.79 percent, or 57.97 points, at 7,351.05, its highest close since June 6, 2011.

"Heavy interest in blue-chips pushed the market up. We feel the market has gone above the earning levels," said Dimantha Mathew, manager, research at First Capital Equities (pvt) Ltd.

Mathew said the market's gains could have an impact on earnings in the September quarter as the bourse is already overheated.

Analysts said local investors have no alternative but to buy stocks.

Though the central bank has kept interest rates unchanged since January, yield in the one-year t-bill has fallen around 260 basis points so far this year

The day's turnover was 2.46 billion rupees ($18.9 million), much above this year's daily average of over 1.33 billion rupees.

Foreign investors net bought 394.1 million rupees of shares on Thursday, extending net foreign inflows to 7.44 billion rupees so far this year.

Market heavyweight John Keells Holdings Plc, which led the market gain, rose 1.92 percent to 260.60 rupees, while DFCC Bank Plc gained 4.62 percent to 215.30 rupees. 

($1 = 130.5000 Sri Lankan rupee) 

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

Sri Lanka stocks close up 0.8-pct

Oct 02, 2014 (LBO) - Sri Lanka's stocks closed 0.79 percent higher with the price gains of diversified John Keells Holdings amid strong foreign buying, brokers said.

The Colombo benchmark All Share Price Index closed 57.97 points higher at 7,351.05, up 0.79 percent. The S&P SL20 closed 42.25 points higher at 4,107.36, up 1.04 percent.

Turnover was 2.46 billion rupees, down from 2.65 billion rupees a day earlier with 124 stocks closed positive against 78 negative.

Arpico Finance closed 2.00 rupees higher at 162.40 rupees with two off-market transactions of 365.88 million rupees changing hands at 166.00 rupees per share contributing 15 percent of the turnover.

The aggregate value of all off-the-floor deals represented 20 percent of the daily turnover.

John Keells Holdings closed 4.90 rupees higher at 260.60 rupees with market transactions of 406.36 million rupees contributing 16 percent of the turnover.

Access Engineering closed 1.00 rupee higher at 30.70 rupees, attracting most number of trades during the day.

Foreign investors bought 750.88 million rupees worth shares while selling 356.81 million rupees worth shares.

Domestic investors bought 1.71 billion rupees worth shares while selling 2.10 billion rupees worth shares.

Index heavy John Keells Holdings contributed most to the index gain.

JKH’s W0022 warrants closed 3.40 rupees higher at 79.40 rupees and its W0023 warrants closed 90 cents higher at 83.10 rupees.

DFCC Bank closed 9.50 rupees higher at 215.30 rupees and Commercial Leasing and Finance closed 30 cents higher at 4.70 rupees.

Commercial Bank of Ceylon closed 2.00 rupees higher at 160.00 rupees and Carson Cumberbatch closed 8.50 rupees higher at 450.00 rupees.

The Supreme Court has ruled in favour of Arpico Finance in a judgment restraining Richard Pieris from using “Arpico Finance”, Arpico Finance PLC said in a stock exchange filing.

Nation Lanka Finance sells control of subsidiary for Rs. 31.5 m

Nation Lanka Finance Plc said yesterday that it has sold a 75% stake in subsidiary Nation Lanka Capital Ltd., for Rs. 31.5 million to Protege Investment Ltd.

The stake amounting to three million shares was sold at Rs. 10.50 each.

Protege Investment is a June 2012 incorporated company and located at Ward Place, Colombo 7.

Nation Lanka Capital’s Managing Director Anura Chandrasiri is also an Executive Director at Protégé Investment Ltd. Chandrasiri, an Attorney at Law with experience in civil, criminal and immigration law also serves on the Board of People’s Leasing and Finance Plc.

The transaction has been approved by the Central Bank.

www.ft.lk