COLOMBO May 12 Sri Lankan stocks rose on Monday
to an 11-month closing high, led by oil palms and financials,
while market sentiment was boosted by a lower interest rate
regime and foreign inflows.
Stockbrokers said many investors have been compelled to
return to the stock market due to multi-year low interest rates,
which has made fixed income assets less attractive.
The main stock index rose 0.29 percent, or 18.29
points, to 6,303.16, its highest close since June 11. The gains
were led by Bukit Darah Plc, which rose 4.76 percent
to 680 rupees.
Foreign investors, on a buying streak for the last six
sessions, were net buyers of 121.2 million rupees of stocks on
Monday. They have been net sellers of 403.4 million rupees so
far this year.
The day's turnover was 866.5 million rupees, below this
year's daily average of 1.04 billion rupees.
Analysts, however, said lower credit growth has raised
questions around growth and earnings amid lower consumer
Despite a multi-year low interest rate regime, the private
sector credit grew just 4.4 percent in February from a year
earlier, the slowest expansion since May 2010. That compared
with a growth of 5.2 percent in January and 13.3 percent in
($1 = 130.4000 Sri Lanka Rupees)
(Reporting by Ranga Sirilal and Shihar Aneez; Editing by