Bourse ends at over 6-month high, led by large caps

Friday, 7 August 2015 00:42 - - {{hitsCtrl.values.hits}}

Reuters: Shares ended at their highest in more than six months on Thursday amid a strong turnover led by large-cap stocks on hopes of political stability after the Aug. 17 elections and better earnings in the April-June quarter, brokers said.

But foreign investors exited from risky assets, reversing the year-to-date net foreign inflow to net outflow.

The main stock index ended 0.15%, or 10.93 points up, at 7,377.24, its highest level since 29 January, Thomson Reuters data showed. BUP_DFT_DFT-7-7

“A lot of retail activity was were there today. Still more appetite is there with expectations of political stability,” Danushka Samarasinghe, research head at Softlogic Stockbrokers, told Reuters.

“There should be another profit-taking session before the elections, but with good earnings there is no other reason for the market to see a correction.”

The gains were led by large-caps such as Ceylon Tobacco Co Plc, which rose 0.34%. Conglomerate John Keells Holdings Plc gained 1.53%.

The index had gained 6.6% in nearly a month through Thursday as investors appetite for risky assets on expectations of strong corporate earnings and political stability after the parliamentary election.

Thursday’s turnover stood at Rs. 2.5 billion ($ 18.7 million), its highest since 29 July and more than double of this year’s daily average of Rs. 1.11 billion.

Foreign investors, who sold a net Rs. 265.4 in equities on Thursday, have sold a net Rs. 102.5 million worth of shares so far this year.