COLOMBO May 9 Sri Lankan stocks rose on Friday
to a near 11-month closing high, led by financials, while a
block deal in conglomerate Expolanka Holdings boosted foreign
inflow to more than two-year high and turnover to its highest
since June 2012.
The main stock index rose 0.15 percent, or 9.14
points, to 6,284.87, its highest close since June 11.
Shares in Expolanka Holdings Plc, which saw 30
percent of its stocks changing hands, ended flat at 10.30 rupee.
Expolanka Holdings in a filing to the bourse said 586
million shares were bought by S.G Holdings Ltd, the Japan-based
holding company of leading freight and logistic company Sagawa
group, at 10.70 rupees a share.
"Expolanka trade boosted the market, while others ran on
earning expectations in the low interest-rate regime," a
stockbroker said on condition of anonymity.
"Foreign investors coming in is also a good indication"
After the market close, the Expolanka in a disclosure said
the S.G Holdings would make a mandatory offer.
Expolanka accounted for 90.3 percent of the day's turnover
of 7.15 billion rupees ($54.8 million), which was highest since
June 26, 2012, and well above this year's daily average of 1.04
Foreign investors were net buyers of 6.28 billion rupees
worth of stocks on Friday, the highest inflow since March 16
2012 and erasing the most of the year-to-date outflow, which
stood at 524.6 million rupees on Friday.
The day's gain boosted the market capitalisation by 3.83
billion rupees to 2.63 trillion rupees ($20.15 billion), led by
Analysts, however, said a lower credit growth has raised
questions over growth and earnings amid lower consumer spending.
Despite a multi-year low interest rate regime, private
sector credit grew 4.4 percent in February from a year earlier,
the slowest expansion since May 2010. That compared with growth
of 5.2 percent in January and 13.3 percent in February 2013.
($1 = 130.5050 Sri Lanka Rupees)
(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Anand