Industry and domestic buying take Sri Lankan stocks to an all-time high
Jan. 7 (Reuters) – Sri Lankan stocks ended higher on Friday, hitting a record high during the session and posting their best week in nearly a year, helped by a surge in industrial stocks and sustained buying from national investors.
* The CSE All-Share Index closed 0.85% higher at 13,280.94, its eighth consecutive day of gains. The index is already up 8.6% in 2022, after rising 80% last year.
* A combination of lack of investment opportunities, inflation and companies reporting better numbers due to import restrictions that undermine foreign competition are behind the rally, said Abhijit Kukreja, vice-president. senior chairman of emerging markets equities at Auerbach Grayson, a New York-based brokerage firm.
* Kukreja added that the rally was driven by local investors. “Foreign investors were heading for the door so they could get their money back because the dollars were running out of dollars.”
* Sri Lanka faces its worst financial crisis in decades with dwindling foreign exchange reserves and looming debt repayments.
* On Friday, domestic investors were net buyers and bought shares worth 11.48 billion rupees ($ 56.62 million), while foreign investors were net sellers, exchange data https: //www.cse.lk/pages/daily-market-summary/daily -market-summary.component.html showed.
* The turnover of the stock market was 11.64 billion rupees.
* It is misleading to think of the market as a “blockbuster,” Kukreja added, pointing out that the gains came mainly from Expolanka and LOLC, while the main traditional winners in which foreign investors held stakes were largely stable.
* Logistics company Expolanka climbed nearly 1,200% in 2021, while conglomerate LOLC jumped 760%.
* On Friday, the Vallibel One conglomerate led the rally with gains of 15.2%.
* Meanwhile, Sri Lanka has signed an agreement with the local unit of Indian Oil Corp to lease 75 oil tanks, as the island draws closer to securing a $ 500 million line of credit. dollars for fuel from India.
* For a report on world markets click ($ 1 = 202.7 500 Sri Lankan rupees) (Report by Chris Thomas in Bengaluru; Editing by Ramakrishnan M.)