Shares post over 7-wk closing high in high turnover

Reuters: Shares rose for the fourth straight session on Tuesday and closed at their highest level in more than seven weeks, with banks leading the gains.

Turnover hit a two-week high due to buying across the board, while foreign investors continued to purchase Sri Lankan equities.

The Colombo stock index ended 0.36% higher at 6,494.22, its highest close since 10 August.

The index gained 0.2% last week, in its third straight weekly gain.

Turnover stood at Rs. 1.3 billion ($ 8.49 million), its highest since 20 September and well above this year’s daily average of Rs. 915.1 million.

Strong buying interest continued to be seen along with foreign buying, said Dimantha Mathew, head of research at First Capital Holdings.

“Investors were buying blue chips and there were all sorts of buying. We expect the overall positive sentiment in the market to continue for a few more days,” he said.

Analysts said the market shrugged off a statement by the International Monetary Fund on Friday that Sri Lanka’s central bank should be ready to tighten monetary policy to contain inflation and credit growth.

Foreign investors bought a net Rs. 9.6 million worth of shares on Tuesday, extending the year-to-date net foreign inflow to Rs. 18 billion worth of equities.

Shares of Commercial Bank of Ceylon Plc, the country’s biggest listed lender, rose 1.6%, Hatton National Bank Plc gained 2.1% and Cargills (Ceylon) Plc ended 3.8% firmer.

Sampath Bank Plc rose 3.2% and conglomerate John Keells Holdings Plc ended up 0.6%.