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Sri Lankan shares hit a fresh record high,Stocks soar 125% in 2009
Sri Lankan shares hit a fresh record high on Wednesday led by local investor buying of blue chips, to end the year as one of the world's best performing stock markets with 125.2 percent return in 2009.
Post-war economic optimism, low interest rates and slowing inflation have renewed foreign investor interest after the country ended a 25-year war in May.
The All-Share Price Index of the Colombo Stock Exchange gained 1.00 percent or 33.72 points to 3,390.31, surpassing its previous high of 3,372.51 points hit on Tuesday. The stock markets are closed on Thursday.
The bourse ended up 28.96 points or 0.86 percent at a record close of 3385.55 and has risen so far 16.2 percent this month.
With a return of over 125 percent this year, it has outpaced the benchmark emerging market equities index , which has risen 73.2 percent in 2009.
Analysts said local investors were driving up the market after they have seen foreigners buying shares when the market slows down ahead of presidential poll in January.
"Mostly local investors are buying shares, while foreigners are seen buying select blue chips," said Prashan Fernando, executive director at Acuity Stockbrokers.
Analysts also said investors were positioning ahead of Jan. 26 presidential polls, betting that regardless of the outcome the stock market will continue its climb, fuelled by post-war economic optimism.
Foreign investors sold a net 785.3 million rupees ($6.9 million) worth of stocks in 2009, compared to a record net foreign inflow of 13.9 billion in 2008.
But analysts said the number largely reflected the exit of Galleon hedge fund after its founder Raj Rajaratnam was charged with insider trading by U.S. authorities and that foreigners had been net buyers in recent weeks.
Analysts said investors are also buying shares heavily due to low interest rates prevailing in the market.
Conglomerate Carson Cumberbatch jumped 7.68 percent to 490.50 rupees, while shares in Bukit Darah, a large cap conglomerate, closed 6.16 percent at 3,025.50 rupees.
The day's turnover was 765.4 million rupees ($6.7 million), more than last year's daily market average of 464 million rupees.
The daily average turnover for 2009 was a record high of 593.6 million rupees with the total turnover also was at a record 142.5 billion rupees for the year, a bourse official said.
From:Sri Lanka Breaking News-Daily Mirror Online
Sri Lankan shares hit a fresh record high on Wednesday led by local investor buying of blue chips, to end the year as one of the world's best performing stock markets with 125.2 percent return in 2009.
Post-war economic optimism, low interest rates and slowing inflation have renewed foreign investor interest after the country ended a 25-year war in May.
The All-Share Price Index of the Colombo Stock Exchange gained 1.00 percent or 33.72 points to 3,390.31, surpassing its previous high of 3,372.51 points hit on Tuesday. The stock markets are closed on Thursday.
The bourse ended up 28.96 points or 0.86 percent at a record close of 3385.55 and has risen so far 16.2 percent this month.
With a return of over 125 percent this year, it has outpaced the benchmark emerging market equities index , which has risen 73.2 percent in 2009.
Analysts said local investors were driving up the market after they have seen foreigners buying shares when the market slows down ahead of presidential poll in January.
"Mostly local investors are buying shares, while foreigners are seen buying select blue chips," said Prashan Fernando, executive director at Acuity Stockbrokers.
Analysts also said investors were positioning ahead of Jan. 26 presidential polls, betting that regardless of the outcome the stock market will continue its climb, fuelled by post-war economic optimism.
Foreign investors sold a net 785.3 million rupees ($6.9 million) worth of stocks in 2009, compared to a record net foreign inflow of 13.9 billion in 2008.
But analysts said the number largely reflected the exit of Galleon hedge fund after its founder Raj Rajaratnam was charged with insider trading by U.S. authorities and that foreigners had been net buyers in recent weeks.
Analysts said investors are also buying shares heavily due to low interest rates prevailing in the market.
Conglomerate Carson Cumberbatch jumped 7.68 percent to 490.50 rupees, while shares in Bukit Darah, a large cap conglomerate, closed 6.16 percent at 3,025.50 rupees.
The day's turnover was 765.4 million rupees ($6.7 million), more than last year's daily market average of 464 million rupees.
The daily average turnover for 2009 was a record high of 593.6 million rupees with the total turnover also was at a record 142.5 billion rupees for the year, a bourse official said.
From:Sri Lanka Breaking News-Daily Mirror Online
