Stock market posts over 1-week closing high on foreign buying

Reuters: Shares rose for a second straight session on Thursday and posted their highest close in more than one week, as foreign investors bought into banking and diversified stocks.

Overseas investors, who have offloaded shares worth a net Rs. 5.81 billion ($40 million) so far this year, bought equities worth a net Rs. 466.96 million on Thursday. Turnover rose to the highest level since 27 May, at Rs. 960.9 million, well above this year’s daily average of Rs. 733.8 million.

The selling pressure seems to have cleared off and positive signs are getting in to the market slowly, said First Capital Equities Ltd. Head of Research Dimantha Mathew.

“Investors are waiting to see Prime Minister Ranil Wickremesinghe’s restructuring plans in August,” Mathew added.

The benchmark Colombo stock index ended 0.48% higher at 6,310.69, its highest close since 27 June.

Sri Lankan markets were closed on Wednesday for a public holiday.

Shares have been on a downward trend recently, hitting their lowest close since 7 April on Monday after falling 10 out of 11 sessions, on worries over a Capital Gains Tax on stocks, high interest rates and policy uncertainty.

Shares of Lanka ORIX Leasing Co Plc gained 0.87%, while those of Cargills (Ceylon) Plc and Hatton National Bank Plc rose 5.93% and 2%, respectively. Conglomerate John Keells Holdings Plc added 0.36%.