Sri Lankan shares closed higher on Wednesday, after two days of falls, thanks to heavy trade from retail investors who are hopeful of better earnings prospects and post-war economic growth. The Colombo Stock Exchange's All-Share Price Index .CSE rose 14.18 points, or 0.34 percent, to 4,229.40. It hit record high of 4,260.11 points on May 5.
The bourse is up 24.9 percent so far this year, making it Asia's best-performing market.
"High retail buying is pushing the market up," said Prashan Fernando, chief operating officer at Acuity Stockbrokers.
Heavy retail buying has driven the bourse's price-to-earning ratio to 20.88-times, bourse data showed, compared with about 11-times a year ago, when Sri Lanka ended a 25-year war.
Foreign investors bought a net 99.6 million rupees ($87,620) of shares on Wednesday, data showed. They have sold a net 16.4 billion rupees' worth of shares so far this year.
Analysts said foreigners investors would be focused on whether the International Monetary Fund (IMF) will continue its $2.6 billion loan after the Sri Lankan government failed to achieve its budget deficit target in 2009.
Shares in conglomerate John Keells Holdings JKH.CM rose 0.4 percent to 185.50 rupees. Fixed line telephone operator Sri Lanka Telecom SLTL.CM was up 4.11 percent at 38 rupees.
The day's turnover was 2.19 billion rupees, against the 2009 average of 593.6 million rupees. The benchmark 91-day T-bill yield fell 6 basis points to a more than two-month low of 8.18 percent.
The rupee LKR= closed flat at 113.67/68 to the dollar in sluggish trade, the market concerned about whether the IMF will continue its loan, currency dealers said. The rupee hit a 16-month high of 113.52 per dollar on May 4.
The interbank lending rate or call money rate CLIBOR rose to 9.075 from Tuesday's 9.072 percent.
reuters
The bourse is up 24.9 percent so far this year, making it Asia's best-performing market.
"High retail buying is pushing the market up," said Prashan Fernando, chief operating officer at Acuity Stockbrokers.
Heavy retail buying has driven the bourse's price-to-earning ratio to 20.88-times, bourse data showed, compared with about 11-times a year ago, when Sri Lanka ended a 25-year war.
Foreign investors bought a net 99.6 million rupees ($87,620) of shares on Wednesday, data showed. They have sold a net 16.4 billion rupees' worth of shares so far this year.
Analysts said foreigners investors would be focused on whether the International Monetary Fund (IMF) will continue its $2.6 billion loan after the Sri Lankan government failed to achieve its budget deficit target in 2009.
Shares in conglomerate John Keells Holdings JKH.CM rose 0.4 percent to 185.50 rupees. Fixed line telephone operator Sri Lanka Telecom SLTL.CM was up 4.11 percent at 38 rupees.
The day's turnover was 2.19 billion rupees, against the 2009 average of 593.6 million rupees. The benchmark 91-day T-bill yield fell 6 basis points to a more than two-month low of 8.18 percent.
The rupee LKR= closed flat at 113.67/68 to the dollar in sluggish trade, the market concerned about whether the IMF will continue its loan, currency dealers said. The rupee hit a 16-month high of 113.52 per dollar on May 4.
The interbank lending rate or call money rate CLIBOR rose to 9.075 from Tuesday's 9.072 percent.
reuters
