Sri Lanka's stock index rose on Friday from its lowest in more than eight weeks hit in the previous session, led by local buying in market heavyweight John Keells Holdings Plc.
Foreign investors, however, sold Keells' shares amid political uncertainty that has sapped investor confidence and turned them away from risky assets.
The market saw net foreign outflow of 865.1 million rupees ($6.46 million), its worst since Sept. 30, 2014, extending net foreign outflow from equities to 2.39 billion rupees during the past 13 sessions. The bourse, however, has seen net inflows of 3.54 billion rupees into equities so far this year.
Analysts said foreign investors have been selling shares amid expectations the U.S. would hike key interest rates sooner than expected. An upbeat U.S. nonfarm payrolls in May, the largest gain since December, has raised chances of a rate hike as early as September.
The main stock index ended 0.14 percent higher, or 9.76 points, at 7,061.28, edging up from its lowest closing level since April 15 hit on Thursday. The index snapped a four- session straight losing streak on Friday.
"Today, there was some buying interest while the block deals in Keells pushed the turnover," said Dimantha Mathew, research manager at First Capital Equities (Pvt) Ltd.
"Not much selling pressure was there today and the pressure will fade away with the announcement of elections."
President Maithripala Sirisena's government has said it would dissolve parliament once some crucial reforms, including an electoral bill, are passed, but has yet to fix a date for the election.
Friday's turnover was 1.59 billion rupees ($11.87 million), its highest since May 20 and more than this year's daily average of about 1.1 billion rupees.
Shares in conglomerate John Keells Holdings Plc, which saw net foreign selling of 3 million shares, ended 1.94 percent higher while Hayleys Plc rose 6.06 percent.
($1 = 134.0000 Sri Lankan rupees)
Foreign investors, however, sold Keells' shares amid political uncertainty that has sapped investor confidence and turned them away from risky assets.
The market saw net foreign outflow of 865.1 million rupees ($6.46 million), its worst since Sept. 30, 2014, extending net foreign outflow from equities to 2.39 billion rupees during the past 13 sessions. The bourse, however, has seen net inflows of 3.54 billion rupees into equities so far this year.
Analysts said foreign investors have been selling shares amid expectations the U.S. would hike key interest rates sooner than expected. An upbeat U.S. nonfarm payrolls in May, the largest gain since December, has raised chances of a rate hike as early as September.
The main stock index ended 0.14 percent higher, or 9.76 points, at 7,061.28, edging up from its lowest closing level since April 15 hit on Thursday. The index snapped a four- session straight losing streak on Friday.
"Today, there was some buying interest while the block deals in Keells pushed the turnover," said Dimantha Mathew, research manager at First Capital Equities (Pvt) Ltd.
"Not much selling pressure was there today and the pressure will fade away with the announcement of elections."
President Maithripala Sirisena's government has said it would dissolve parliament once some crucial reforms, including an electoral bill, are passed, but has yet to fix a date for the election.
Friday's turnover was 1.59 billion rupees ($11.87 million), its highest since May 20 and more than this year's daily average of about 1.1 billion rupees.
Shares in conglomerate John Keells Holdings Plc, which saw net foreign selling of 3 million shares, ended 1.94 percent higher while Hayleys Plc rose 6.06 percent.
($1 = 134.0000 Sri Lankan rupees)
(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Biju Dwarakanath)
No comments:
Post a Comment