Bourse reaches new high, rupee down

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COLOMBO, April 18 (Reuters) - Sri Lankan shares hit a six-month high on Thursday, as investors bought diversified shares and retail investors came back after the central bank said there would be room for further monetary policy easing.

The central bank on Tuesday kept key monetary policy rates unchanged for a fourth straight month, as expected, but left the door open for easing later as inflation is expected to slow further.

The main stock index gained 0.4 percent, or 23.30 points, to 5,891.83, its highest close since Oct. 2, 2012.

'Retail investors and margin traders are active as they see at least stabilisation of interest rates as a positive sign and (the central bank) will not increase the rates in the short term,' said a stockbroker, who asked not to be named.

Expectations of falling interest rates have boosted sentiment, after Treasury Secretary P.B. Jayasundera last week said Sri Lanka's interest rates should fall in May-June as the borrowing needs of loss-making state energy companies recede.

The index has risen for the last six straight sessions since the treasury secretary's comments.

The turnover was at 800.8 million rupees ($6.38 million) on Thursday, less than this year's daily average of about 965.1 million rupees.

Foreign investors were net buyers of 159.9 million rupees worth of shares, extending the year-to-date net foreign inflow to 7.31 billion rupees. Last year, the bourse saw a net inflow of $303 million.

The rupee edged down for a third straight session to 125.72/78 to the dollar, from Wednesday's close of 125.60/62, due to demand from importers for the greenback, said currency dealers.

The rupee has been on the rise since mid-March on inflows from remittances and exporter dollar sales ahead of the traditional new year, which most Sri Lankans celebrated on April 13 and April 14. ($1 = 125.5500 Sri Lanka rupees)

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Subhranshu Sahu)

(ranga.sirilal@thomsonreuters.com)(+94-11-232-5540)

(Reuters Messaging: ranga.sirilal.thomsonreuters.com@reuters.net)(twitter.com/rangab a)
http://www.xe.com/news/2013/04/18/3312093.htm?c=1&t=

Redbulls · 2 Total turnover for the day recorded at LKR801 mn Thu Apr 18, 2013 5:42 pm

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WRITTEN BY THARANGA SENARATNE
Apr 18, 2013 (LBT) - The market continued to edge upwards, albeit modestly with the ASPI gaining 0.4% to close at 5892. Turnover recorded LKR801 mn with trading in Hatton National Bank, Cargills and Hatton National Bank(X) changing hands that accounted for 26% of the day’s total. Gainers outpaced losers with George Steuart, SMB Leasing(X), Harischandra Mills rising by 31.8%, 25.0% and 24.5% and offsetting declines in Hayleys Fibre, Blue Diamonds(X) and Kotagala Plantations which lost 6.0%, 5.9% and 5.2% respectively. Meanwhile Asian markets took a hit today after losses on Wall Street, while dealers were also put off by a warning from Germany's central bank that Europe's debt crisis could continue for a decade.

While market momentum appears to be building up, we advise investors to continue to adopt a selective approach, cherry picking counters that will benefit from the domestic consumption story. In terms of the macro-economic front, while we do share some concern regarding inflationary pressures (in turn trimming EPS growth prospects for companies that are overly leveraged), we continue to remain Overweight on bluechip stocks. Consequently we advise investors to enter the market in an informed manner carefully selecting sectors and counters that will fully benefit from the domestic consumption story.
http://lbt.lk/stock-market/movement/4191--total-turnover-for-the-day-recorded-at-lkr801-mn

Slstock · 3 Re: Bourse reaches new high, rupee down Thu Apr 18, 2013 5:45 pm

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Retail interest coming is a good sign.

sahan8896 · 4 Re: Bourse reaches new high, rupee down Thu Apr 18, 2013 5:48 pm

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Also no of trades hit 10000 after long time. Very Happy

WildBear · 5 Re: Bourse reaches new high, rupee down Thu Apr 18, 2013 6:06 pm

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Sri Lanka fuel prices already went up and electricity prices to go up shortly, this will reduce the credit demand exerted by CPC and CEB and will ease interest rates as PBJ explaned. This effect can be even faster as a result of declining trend of crude oil prices and also with improved rainfalls , increased capacity of Hydro power. Do not know whether our Genius ministers will show some profits in the balance sheets of CPC and CEB.

CSE.SAS · 6 Bourse reaches new high, rupee down Fri Apr 19, 2013 12:50 am

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The Colombo bourse closed in positive territory for the sixth consecutive day reaching a new high this year while the rupee lost ground against the US dollar yesterday (18).

The All Share Price Index closed 0.40 percent higher, up 23.30 points at 5,891.83 while the S&P SL20 closed at 3,351.15, up 0.32 percent gaining 10.84 points.

Turnover amounted to Rs. 800.84 million.

Foreign purchases amounted to Rs. 301.81 million, leading to a net inflow of Rs. 159.85 million.

"The ASPI ended higher for a sixth consecutive trading day, reaching a new high for YTD 2013, amid strong gains in speculative second tier counters. Turnover continued to be dominated by trades on banking counters, inclusive of block trades," John Keells Stockbrokers said.

"Bank, Cargills and Hatton National Bank(X) changing hands that accounted for 26% of the day’s total. Gainers outpaced losers with George Steuart, SMB Leasing(X),

Harischandra Mills rising by 31.8%, 25.0% and 24.5% and offsetting declines in Hayleys Fibre, Blue Diamonds(X) and Kotagala Plantations which lost 6.0%, 5.9% and 5.2% respectively," DNH Financial said.

"While market momentum appears to be building up, we advise investors to continue to adopt a selective approach, cherry picking counters that will benefit from the domestic consumption story. In terms of the macro-economic front, while we do share some concern regarding inflationary pressures (in turn trimming EPS growth prospects for companies that are overly leveraged), we continue to remain Overweight on bluechip stocks. Consequently we advise investors to enter the market in an informed manner carefully selecting sectors and counters that will fully benefit from the domestic consumption story," DNH Financial said.

The rupee dipped further yesterday on heightened activity in the forward exchange market. The rupee closed at Rs. 125.65/70 against the US dollar from an opening position of Rs. 125.55/65.

Excess liquidity in the banking system topped Rs. 35 yesterday.

In the secondary market for government bonds, the eight year bond yield closed higher at 11.77/82 percent from 11.65/80 the previous day.
http://www.island.lk/index.php?page_cat=article-details&page=article-details&code_title=77091

Slstock · 7 Re: Bourse reaches new high, rupee down Fri Apr 19, 2013 4:36 am

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Some possibilities now

1) a few red days now to cool things off but not drag ASI down by a lot ( that will be bad)
2) this trend keep pushing, breaking ASI 6000 easily/comfortably and then taking a bit of a rest. If is breaks 6000, and want to take a rest , it should saty above 6000. Falling below 6000 again might not be that good.