Bourse recovers from 3-month low

Reuters: Sri Lankan shares edged higher on Thursday from their lowest in three months hit in the previous session, as investors picked up battered shares like market heavyweight John Keells Holdings Plc.

However, the gains were capped as political uncertainty ahead of the 17 August parliamentary elections weighed on sentiment. Foreign investors continued to exit risky assets for a seventh straight session.

The main stock index ended up 0.34% at 6,947.05, edging up from its lowest close since 10 April hit on Wednesday.

The day’s turnover stood at Rs. 1.04 billion ($ 7.78 million), near this year’s daily average of Rs. 1.06 billion.

The market saw a net foreign outflow of Rs. 577.4 million on Thursday, the highest since 17 June, extending net outflows for the past 31 sessions to Rs. 5.43 billion.

However, foreign investors have been net buyers of Rs. 513.3 million worth of shares so far this year.

“Foreigners will come only when the water is clear. They will not take a chance in uncertainty,” said Reshan Kurukulasuriya, chief operating officer of Richard Pieris Securities Ltd.

Shares in John Keells rose 2.11%, while Lion Brewery Plc rose 1.03%, pushing up the overall index.

President Maithripala Sirisena dissolved parliament on June 26 and scheduled elections for 17 August, in an effort to consolidate power and push through political reforms.