Sri Lankan stocks rise to near 3-1/2 year high

COLOMBO, Nov 8 (Reuters): Sri Lankan stocks rose Friday to hit a near three-and-half-year high, led by bluechips such as market heavyweight John Keells Holdings Plc and on buying by foreign investors. Low interest rates and better earnings expectations boosted sentiment.
Sri Lanka's main stock index closed up 0.78 per cent, or 57.69 points, at 7,416.15, its highest closing level since May. 31, 2011.
"We expect strong buying interest to continue further on selected counters, driven by projected healthy quarterly earnings," Fist Capital Equities (Pvt) Ltd said in a note to investors.
"We advise investors focus their attention on financials that are being released when picking stocks as there are limited number of counters trading at attractive valuations, mainly in manufacturing, banking and energy sectors."
Shares in Ceylon Tobacco Company Plc, which led the overall gain, rose 1.75 per cent to 1,150 rupees.
Top conglomerate John Keells Holdings Plc, which reported on Tuesday a 29 per cent year-on-year rise in September quarter net profit, rose 1.18 per cent to 258 rupees.
Shares in top mobile phone operator Dialog Axiata Plc , which reported on Wednesday a 15.6 per cent jump in its third quarter net profit, rose 2.46 per cent to 12.50 rupees.
Foreign investors bought a net 739.6 million rupees ($5.65 million) worth of shares, extending the net foreign inflow so far this year to 15.57 billion rupees, exchange data showed.
Friday's turnover was 2.53 billion rupees, well above this year's daily average of 1.39 billion rupees.
Analysts expect trading to be choppy in the near-term due to the revised presidential poll schedule in January and a possible bottoming out of interest rates.