COLOMBO Aug 12 Sri Lankan stocks recovered on
Tuesday to end a tad firmer around a three-year closing high,
led by large caps such as Ceylon Tobacco Company Plc,
as lower interest rates and buying by foreign funds helped
investors bet on risky assets.
Stockbrokers, however, expect a correction during the week,
in an overbought market, after the index gained for a sixth
The main stock index, which fell as much as 0.57
percent during the early trade, closed 0.07 percent, or 4.98
points firmer at 6,947.90, its highest close since Sept. 12,
2011. It has risen 17.51 percent so far this year.
"The market rebounded during the latter part of the day with
gains in big cap illiquid shares," said a stockbroker requesting
not to be named. "A correction is expected. But the market will
break the 7,000 level."
Analysts said hopes of a policy rate cut on Friday and
further fall in interest rates helped boost turnover, and that
better corporate earnings and continued foreign buying too have
helped maintain sentiment.
Turnover was 1.2 billion rupees ($9.22 million), more than
this year's daily average of 1.11 billion rupees.
Foreign investors bought a net 164.5 million rupees worth of
shares on Tuesday, extending the year-to-date net foreign inflow
to 12.29 billion rupees.
Ceylon Tobacco Company Plc which led the overall
index gain, added 4.15 percent to 1,197.70 rupees, while Ceylon
Cold Stores Plc gained 3.92 percent to 220.20 rupees.
Profit taking dragged the market heavyweight John Keells
Holdings Plc down 0.63 percent to 238 rupees, analysts
(1 US dollar = 130.1800 Sri Lankan rupee)
(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Biju