Bourse ends firmer on retail buying

Reuters: Shares extended gains into a second session on Wednesday in heavy trade and posted their highest close in over two months, as retail investors bought, particularly plantation stocks, after recent foreign buying, brokers said. Turnover was Rs. 1.93 billion ($ 12.6 million), more than double this year’s daily average of Rs. 935.8 million.

Foreign investors were net sellers of shares worth Rs. 132.8 million, after having bought Rs. 3.7 billion of equities in the 17 sessions through Tuesday. They have net bought Rs. 20.1 billion worth of shares so far this year.

The Colombo stock index ended 0.55% firmer at 6,559.61, its highest close since 4 August. The index rose 1.4% last week in its fourth straight weekly gain. “There was a lot of foreign interest in banks and retail interest in some plantation companies. We see a revival in retail buying,” said Acuity Stockbrokers CEO Prashan Fernando. Shares of Commercial Bank of Ceylon Plc, the country’s biggest listed lender, ended up 0.5%, Hatton National Bank Plc rose 2.7% and Sampath Bank Plc ended 3.4% firmer.