Stock market hits 4-week closing high; large caps lead

Reuters: Shares hit a four-week closing high on Wednesday, rising for a third straight session, as investors picked up large cap shares such as Ceylon Tobacco Company Plc, brokers said.

The Colombo stock index ended 0.43% firmer at 6,175.50, its highest close since 18 January.

“Market continued its uptrend as the prices are still cheap and attractive for investors and the news such as Fitch are positive for investors,” said Richard Pieris Securities Ltd. Chief Operating Officer Reshan Kurukulasuriya.

Last week, Fitch Ratings affirmed Sri Lanka’s Long-Term Foreign- and Local Currency Issuer Default Ratings (IDR) at ‘B+’ and revised the outlook to ‘stable’ from ‘negative’. Shares of Ceylon Tobacco Company Plc jumped 2.89%, while Ceylinco Insurance Plc rose 5.97%.

Turnover stood at Rs. 876.3 million ($ 5.83 million), more than this year’s daily average of Rs. 631.4 million.

Foreign investors net bought Rs. 22.3 million worth of equities on Wednesday. They have net sold Rs. 290.7 million worth of shares so far this year.

Sri Lankan stocks have been hit by political uncertainty after ruling coalition parties decided to contest local polls separately, and on worries over a rise in interest rates.

Yields on treasury bills rose 5-8 basis points at a weekly auction on Wednesday and are hovering at a more than four-year high.