Stock market gains; net foreign inflow tops Rs. 16.5 b

Reuters: Shares ended firmer on Thursday, helped by foreign buying in blue chips, after the International Monetary Fund said it may consider the country’s request for a second loan review.

The Colombo stock index ended 0.59% stronger at 6,602.44, near its one-year closing high hit on Friday, boosted by foreign buying in heavyweights such as John Keells , up 2.1%, and Ceylon Tobacco Company, up 1.2%. “With the renewed foreign interest, we can see retail investors are slowly returning to the market. Fundamentally sound stocks moved the market today,” said Atchuthan Srirangan, a senior research analyst at First Capital Holdings Plc. “The positive IMF news also helped boost the market sentiment.” Analysts said the market will continue to be bullish with mild profit-taking.

Turnover stood at 1.08 billion rupees ($ 7.09 million), more than this year’s daily average of Rs. 901 million. Foreign investors net bought shares worth Rs. 62.2 million, extending their year-to-date investment in equities to Rs. 16.52 billion. They bought a net Rs. 14 billion worth of equities in the last 29 sessions.