Stocks extend gains on lower rates, foreign buying

18 Jan 2013 - {{hitsCtrl.values.hits}}

Stock market climbed to its highest close since early October yesterday as investors bought into risky assets due to falling interest rates while foreign inflows into blue chips bolstered turnover.The main share index closed up 1.08 percent, or 62.81 points, at 5,875.28, its highest close since Oct. 3.

Before the market opened on Thursday, the central bank left key policy rates steady, as expected, after a surprise cut last month. The bank said it expected inflation to moderate soon.Yields in government securities have been falling due to foreign inflows into treasury bills and bonds in recent weeks.

On Wednesday, T-bill yields eased for the seventh straight week. The 91-day yields eased 13 basis points to a 10-month low of 9.75 percent.Turnover was 2.05 billion rupees ($16.19 million). Foreign investors were net buyers of 152.51 million rupees worth of shares, extending the net inflow to 635.1 million rupees this year. Sri Lanka last year enjoyed a record inflow of 38.63 billion rupees.The rupee closed weaker at 126.65/70 to the dollar from Wednesday’s close of 126.55/60.

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Stocks extend gains on lower rates, foreign buying

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