Stock market posts biggest single-day gain in over two years on foreign buying

Reuters: Sri Lankan shares on Wednesday extended gains for an 11th straight session, posting their biggest single-day gain in more than two years, as foreign investors aggressively bought blue chip stocks.

The Colombo stock index ended 1.55% firmer at 6,402.99, its highest close since November 15 2016. The index recorded its biggest percentage gain since February 6 2015.

The index has gained 1.75% during the week, posting its third weekly gain in eight. It has climbed 7.16% in the last 11 sessions through Wednesday.

The market has seen fund inflows for 16 straight sessions through Wednesday, with foreign investors buying a net 5.22 billion rupees ($34.31 million) worth of equities in the same period.

They net bought shares worth 319 million rupees on Wednesday, raising the year-to-date net foreign inflow into equities to 7.71 billion rupees.

“Continuous foreign buying in John Keells Holdings and Ceylon Tobacco Company helped the gain,” said Atchuthan Srirangan, a senior research analyst with First Capital Holdings PLC.

Shares of Ceylon Tobacco Company plc jumped 9.8%, while Ceylon Cold Stores Plc gained 2.87% and biggest listed Lender Commercial Bank of Ceylon Plc rose 2.66% and conglomerate John Keells Holdings Plc rose 1.33%.

Turnover stood at 2.37 billion rupees, the highest since February 28 and well above this year’s daily average of 780.7 million rupees.

Sri Lanka markets were closed on Thursday and Friday.