Bourse ends near 3-week closing high; turnover highest in over 6 years

Saturday, 16 September 2017 00:21 - - {{hitsCtrl.values.hits}}

Reuters - Shares rose for a second straight session on Friday and ended at a near three-week closing high, while a block deal in Singer Sri Lanka PLC pushed turnover to over a six-year high.

The Colombo Stock Index ended 0.32% firmer at 6,402.03, its highest close since 28 August.

The bourse rose 0.4% during the week, ending an eight-week long losing streak.

On Wednesday after market hours, diversified conglomerate Hayleys PLC said it had agreed to purchase 61.73% of Singer Sri Lanka PLC for Rs. 10.9 billion from Retail Holdings (Sri Lanka) BV a subsidiary of Retail Holdings NV.

Hayleys in a corporate disclosure said on Friday that Hayleys PLC and its subsidiaries purchased 231.9 million shares or 61.73% of Singer Sri Lanka PLC at a price of Rs. 47 per share.

Singer Sri Lanka saw foreign investor selling of 231.9 million shares and ended 0.4% lower. It accounted for 95.2% of the day’s turnover of Rs. 11.4 billion, the highest since March 16, 2011 and well above this year’s daily average of around Rs. 921 million.

Foreign investors net sold Rs. 10.8 billion worth of shares on Friday, but they have been net buyers of Rs. 16.9 billion worth of equities so far this year.

“We could see buying interest coming into the market after the Hayleys deal,” First Capital Holdings Head of Research Dimantha Mathew said.

“It reactivated local investor confidence and the market is getting stronger day by day.”

Shares of Commercial Bank of Ceylon PLC rose 1.6% while conglomerate John Keells Holdings PLC gained 0.7% and Lanka ORIX Leasing Company PLC closed 1.6% higher.

Hayleys PLC ended 0.04% lower.