Stock market remains positive on foreign buying

Reuters: Shares rose on Wednesday to their highest close in nearly three months led by blue chips such as John Keells Holdings Plc, as continued foreign buying boosted sentiment.

The Colombo stock index ended 0.84% firmer at 6,198.32, its highest close since 16 January. The index rose 1.1% last week, posting its first weekly gain in six.

“Foreigners see value in some select blue chips now. Now, we see there is a demand for stocks mainly because foreign investors are buying them gradually,” said Acuity Stockbrokers CEO Prashan Fernando.

Foreign investors net bought shares worth Rs. 231.6 million ($ 1.53 million) on Wednesday, raising the year-to-date net foreign inflow to Rs. 6.07 billion in equities. They have net bought 3.58 billion worth equities in the past 12 sessions.

Turnover stood at Rs. 640.7 million, less than this year’s daily average of Rs. 747.7 million.

Shares of conglomerate John Keells Holdings Plc gained 2%, while Hatton National Bank Plc climbed 0.2%.