Colombo indices were up on Thursday with analysts saying that the news of the country concluding its most successful bond issue to date coupled with the signs of easing up interest rates has lifted traders’ spirits.
"With the inflow of proceeds from the US$1 Billion bond issue and the final IMF tranche which is to be finalized tomorrow, local currency would strengthen and this will reflect positively on the external balances," an analyst said. He said that retailers led the rally with the indices spiking during the initial hour. “The news of the meeting with President Mahinda Rajapaksa this Friday with some powerful stock market investors, the Securities and Exchange Commission (SEC) and the Colombo Stock Exchange (CSE) to discuss market issues has also lifted many spirits as there is 'hope' that credit restrictions to stockbrokers will be abolished (after this meeting)," the analyst said.
The SEC last week extended the credit limits but brokers were unsatisfied and are seeking unrestricted credit saying lack of credit is curbing the market in which the All Share Index has fallen to the 4,840 level.
The All Share Index gained 68.47 points to close at 4891.11 while the liquid Milanka gained 62.58 points to close at 4331.04. The S&P index gained 17.43 points to close at 2,760.18. The turnover was at Rs 663.8 million. (DEC)