Stock market gains on high turnover

Reuters: Shares closed about half a percent higher on Wednesday, recovering from a more than eight-month closing low hit in the previous session, led by blue chips such as John Keells Holdings and Hatton National Bank.

Turnover was Rs. 1.73 billion ($ 11.59 million), more than twice the daily average of Rs. 739.5 million for this year. Commercial Bank of Ceylon and Sunshine Holdings accounted for 48.3% and 44% of the turnover, respectively.

The Colombo stock index finished 0.41% higher at 6,228.51, bouncing back from its lowest close since 6 April hit in the prior session. It shed around 2.1% in the 10 sessions through Tuesday.

“Blue chips lifted the market. I think it was mostly due to window dressing ahead of the year-end,” said Atchuthan Srirangan, a senior research analyst with First Capital Equities Ltd.

Foreign investors bought a net Rs. 16.2 million worth shares on Wednesday, extending the year-to-date net foreign inflows to Rs. 627.5 million in equities.

Top conglomerate John Keells rose 1.1%, while Hatton National Bank gained 2.65%. Commercial Bank of Ceylon closed 2.1% higher, while Sunshine ended flat.