Bourse hits 2-week closing high

Saturday, 27 January 2018 00:57 - - {{hitsCtrl.values.hits}}

Reuters - Shares rose for a third straight session to hit a two-week closing high on Friday, led by telecom shares, but trading was dull as investors waited for direction amid political concerns over local-government elections next month, dealers said.

The Colombo Stock Index ended 0.12 percent firmer at 6,456.04, its highest close since 12 January. The index rose 0.19 percent on week, its first weekly gain in three.

Shares in Hemas Holdings PLC were up 0.5 percent, while Dialog Axiata PLC ended 1.5 percent higher, and Sri Lanka Telecom PLC gained 2.5 percent.

“Things were very slow, even the foreign activity was very low today,” First Capital Holdings Head of Research Dimantha Mathew said.

“Activities have been coming down from the last few days. Probably towards elections it will slow down further as investors are on a wait-and-see attitude.”

Turnover was Rs. 264.1 million ($1.72 million), its lowest since 2 January and well below last year’s daily average of Rs. 915.3 million. Foreign investors bought a net Rs. 21.2 million worth of shares on Friday, extending the year-to-date net foreign inflow to Rs. 4.02 billion worth equities.

President Maithripala Sirisena said over the weekend that he would handle the economy, taking over from the Government’s main coalition partner, the UNP, led by Prime Minister Ranil Wickremesinghe.

The comments have sparked uncertainty over the future of the coalition Government, analysts said.