Sri Lanka stocks gain for 3rd session; investors advised to choose quality shares
COLOMBO, Jan 9 (Reuters) - Sri Lankan stocks rose for a third straight session to a near five-month high on Thursday with turnover boosted by foreign buying in risky assets, while analysts asked investors to focus on quality shares for double-digit returns. The main stock index gained 0.25 percent, or 14.87 points, to end at 6,069.34, its highest close since Aug. 22. It has gained more than 2 percent in the last three sessions, with the index now in an over-bought region. 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., First Capital Equities advised investors in a note against seeking speculative positions and to focus on quality companies that would generate double-digit returns over a reasonable investment horizon. "Investors are advised to refrain from applying a herd mentality in the current sideways market, but use the opportunity to review their portfolios in order to ensure that their allocations continue to reflect their risk appetite, investment goals and horizon," it said. 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 due to a sluggish bourse and falling interest rates. The day's turnover was 1.57 billion rupees, surpassing last year's daily average of about 828.4 million rupees. Foreign buying accounted for 56 percent of the turnover. Foreign investors bought a net 109 million rupees ($833,000) worth of shares on Thursday, extending year-to-date foreign inflows to 169.8 million rupees. Offshore investors bought a net 22.88 billion rupees worth of stocks last year, while 2011 saw a record 38.68 billion rupees in net foreign inflows. Ceylon Tobacco Co PLC shares rose 1.09 percent to 1,219.50 rupees, while Nestle Lanka PLC gained 1.91 percent to 2,166.80 rupees. ($1 = 130.8500 Sri Lanka rupees) (Reporting by Ranga Sirilal and Shihar Aneez; Editing by Prateek Chatterjee)
- More troops deployed in Ferguson to guard against fresh riots |
- Merkel hits diplomatic dead-end with Putin
- Jewish-nation bill frays Israel's delicate social fabric
- Ukraine reports new arrivals of Russian supplies for eastern rebels |
- Gunshots echo as violence returns to Ferguson, protests across U.S.