Bourse gains on foreign buying

Reuters: shares edged up on Wednesday on foreign buying in market heavyweight John Keells Holdings while investors awaited for direction from September-quarter earnings and the national budget scheduled to be presented next week.

Foreign investors bought shares net worth Rs. 275.5 million ($ 1.79 million), extending the year-to-date net inflows to Rs. 20.52 billion in equities.

The Colombo stock index closed 0.1% higher at 6,624.2, its highest close since 26 October.

Shares in Capital Trust rose 3.1% while John Keells gained 0.6%.

“Foreign investors were interested in shares like John Keells and Lion Brewery. Retail investors were interested in plantation shares,” said Hussain Gani, deputy CEO at Softlogic Stockbrokers.

“We believe the budget will be a business-friendly one, which will encourage more investments.”

Finance Minister Mangala Samaraweera will present the 2018 budget on 9 November.

The session’s turnover was Rs. 999.7 million, higher than this year’s average daily turnover of Rs. 942.6 million.