Stocks extend gains on hopes for SEC’S next moves

REUTERS: Sri Lankan stocks rose for the seventh straight day yesterday, hitting a four-month high on hopes the Securities and Exchange Commission (SEC) will ease regulations.Nalaka Godahewa, the new SEC Chief, is expected to come up with policies to try to revive the market, which has fallen 12.30 percent so far this year.

The Colombo Stock Exchange’s main index gained 0.84 percent, or 44.91 points, to 5,372.13, its highest close since May 4. The rise helped boost market capitalisation by Rs.17.2 billion.

The market has risen 10.85 percent since August 13, when the previous SEC Chief announced he was resigning after coming under pressure to quit, and 5.3 percent since the new regulator chief took over.Turnover was Rs.941.06 million ($7.11 million), more than this year’s daily average of Rs.867 million.

The bourse saw a net foreign outflow of Rs.28.14 million worth of shares yesterday, but offshore investors have been net buyers of Rs.28.44 billion so far this year.

The rupee closed steady at 132.30/35 against the dollar in dull trade, dealers said.