Positive New Year start at Bourse

Reuters: Shares rose for a seventh straight session to hit a near five-week closing high on Tuesday as investors picked up large caps, with sentiment expected to remain positive after the central bank kept key policy rates unchanged last week.

The Colombo Stock Index ended 0.66% firmer at 6,411.27, its highest since 30 November. Turnover stood at Rs. 194.6 million ($ 1.27 million), less than last year’s daily average of Rs. 915.3 million.

“It was a typical first day of the new year with the volumes low. But the market is positive after the central bank kept the rates lower and the market rates are coming down,” said Hussain Gani, deputy CEO at Softlogic Stockbrokers.

The Bourse rose 2.26% in 2017, posting the first annual increase in three years, after falling 9.7% in 2016.

Shares in Ceylon Tobacco Company Plc rose 5.5%, while Dialog Axiata Plc ended 3.1% firmer.

Conglomerate John Keells Holdings Plc gained 1.01%, while the biggest listed lender Commercial Bank of Ceylon Plc closed up 1.6%.

Foreign investors net bought shares worth Rs. 102.8 million on Tuesday. Foreign investors net bought Rs. 18.5 billion worth equities in 2017, and Rs. 633.5 million worth of stocks in 2016.

The $ 81 billion economy grew at an annual pace of 3.7% in the first nine months of 2017, which followed its most severe drought in 40 years in the first quarter and the worst flooding in 14 years in May.