Bourse up to over 6-week closing high before polls
Thursday, 8 January 2015 01:03
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Reuters: Stocks rose to a more than six-week closing high on Wednesday, as investors picked up beaten-down shares a day ahead of a tight presidential election.
The main stock index closed 0.25%, or 18.38 points, firmer at 7,438.52, its highest close since 20 November.
“The market took a cautious approach towards elections, though there won’t be a major shift in policies whoever wins,” said Reshan Kurukulasuriya, chief operating officer of Richard Pieris Securities Ltd.
President Mahinda Rajapaksa called early elections to be held on 8 January. Twenty-six lawmakers have quit his ruling United People’s Freedom Alliance since the announcement, including former health minister Mithripala Sirisena, who is challenging Rajapaksa’s bid for a third term. Two Opposition legislators have joined the ruling party.
The gain in stocks was boosted by a 5.13% rise in Hemas Holdings Plc and a 0.78% gain in Sri Lanka Telecom Plc.
The day’s turnover was Rs. 1.39 billion ($ 10.6 million), slightly less than last year’s daily average of Rs. 1.42 billion, stock exchange data showed.
Foreign investors were net buyers of Rs. 81.3 million worth of shares on Wednesday, but have been net sellers of Rs. 216.9 million so far this year, the data showed. They bought a net Rs. 22.07 billion worth of stocks last year.
The index rose 23.4% in 2014, but has lost 3.5% since 19 November when Rajapaksa announced the snap poll.
