Stock market ends slightly higher

Thursday, 14 July 2016 00:00 - - {{hitsCtrl.values.hits}}

Reuters: Shares ended slightly higher in thin trade on Wednesday, extending gains from the previous session when it touched a near three-week closing high, as investors bought into banking stocks.

Sentiment was also boosted after Sri Lanka raised $1.5 billion in its first sale of dual-tranche eurobonds earlier this week, as the $6.6 billion in offers for the issue showed global investors were bullish about the prospects of the $82 billion economy.

The benchmark Colombo stock index rose slightly for the sixth straight day, and ended up 0.02% at 6,402.78, its highest close since 22 June. It gained 1.3% last week in its first weekly gain in four.

“Sentiment has improved and investors’ mindset have changed. Positive sentiment has emerged,” said First Capital Equities Ltd head of research Dimantha Mathew.

After the bond deal yields in local T-bill auction fell with 364-day T-bill rates fell at Wednesday’s auction for the first time since 15 April.

Turnover stood at Rs. 1.53 billion ($10.47 million), its highest since 18 May and well above this year’s daily average of around Rs. 740.2 million.

Overseas investors, who have offloaded shares worth a net Rs. 5.08 billion so far this year, bought equities worth a net Rs. 211.9 million on Wednesday.

Shares stumbled recently and hit their lowest close since 7 April on Monday, after losing in 10 of 11 trading sessions, on worries over capital gains tax on stocks, high-interest rates and policy uncertainty.

Shares in Aitken Spence Plc gained as much as 5.11% while Hemas Holdings Plc climbed as much as 2.33% and the biggest-listed lender Commercial Bank of Ceylon Plc rose as much as 1.09%.

Top telecom operator Dialog Axiata PLC gained as much 0.93% after announcing the leadership succession plan on Tuesday.