SL Stock Index Up For The Seventh Time

In a statement issued by stockbrokers' research earlier today, they stated that the Sri Lankan stocks rose for a seventh straight session on Thursday to their highest close in 33 months as lower interest rates compelled investors to buy risky assets.

The main stock index ended up 0.83 per cent, or 55.02 points, at 6,668.86, its highest close since Oct. 10, 2011. It has gained 4.5 per cent in seven straight sessions through Thursday.

The gains were led by large-cap consumer staples shares like Ceylon Tobacco Company, which gained 3.12 per cent to 1,100 rupees.

Lower interest rates have prompted local investors to buy more shares and shift their savings from unattractive fixed assets, analysts said, as yields on treasury bills edged down further at a weekly auction on Wednesday. (Full Story)

Turnover was 2.36 billion rupees ($18.12 million), more than twice this year’s daily average of around 1.07 billion rupees.

Foreign investors were net buyers of 349.8 million rupees worth of shares on Thursday, extending the foreign inflows to 9.29 billion rupees worth of shares so far this year.

Analysts said foreigners have been buying risky assets because they see value in them, while falling yields in fixed assets gradually prompt local investors to shift to equities.

The market has been on a rising trend since late February due to continued foreign buying and lower interest rates. 

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