Stock marginally higher; block deals boost turnover

Reuters: Shares ended with modest gains on Tuesday as local investors picked up beverage and trading shares, while block deals boosted the turnover to more than a two-month high.

The Colombo stock index ended 0.08% firmer at 6,377.38.

The Colombo stock index fell 0.2% last week, its eighth straight weekly drop.

Top mobile phone operator Dialog Axiata after market hours said that it acquired 80.34% of Colombo Trust Finance for Rs. 1.072 billion ($ 7 million).

Turnover was Rs. 2.03 billion ($ 13.29 million), the highest since 23 June and well above this year’s daily average of around Rs. 863.5 million.

“It was a good day and even as the market ended nearly flat, there were a lot of crossings,” said Dimantha Mathew, head of research, First Capital Holdings.

“The good sign is the buying interest from the local side that was lacking for a while was seen today even though the foreigners were net sellers.”

Shares in Dialog Axiata Plc rose 0.9% and conglomerate John Keells Holdings Plc ended 0.06% firmer.

Shares of Singer Sri Lanka Plc rose 18.2% while Ceylon Cold Stores Plc ended 3.2% firmer and Ceylon Tobacco Co Plc gained 1%.

Foreign investors net sold Rs. 155.6 million worth of shares on Tuesday. But they have been net buyers of Rs. 27.7 billion worth equities so far this year.