Tuesday, 08 January 2013 18:12
COLOMBO: Sri Lankan stocks ended slightly firmer at a 13-week high on Tuesday, led by diversified shares, while block deals in large caps pushed the day's turnover even as foreign investors left what they see as an overbought market.
The main share index closed 0.1 percent, or 5.84 points up, at 5,751.93, its highest close since Oct. 10.
The index has risen 4.27 percent in the last nine sessions, which analysts have attributed to declining yields in government securities after the central bank cut its policy rates last month.
"The market has gone up only on some select blue chips," said a broker who declined to be identified.
"We still expect the market to go up with other stocks which local retailers trade heavily. They have not risen sharply and with interest rates coming down, I think the market will go up further."
The gains have pushed the market to an over-bought region with the 14-day relative strength index shooting up to 74.234 on Tuesday, well above the upper neutral range of 70.
Foreign investors were net sellers of 409.32 million rupees worth shares after being net buyers of a record 38.63 billion rupees worth of shares last year.
Turnover was 1.27 billion rupees ($9.97 million).
The rupee closed slightly higher at 127.20/30 to the dollar from Monday's close of 127.35/40 on exporter dollar sales, dealers said.
Copyright Reuters, 2013