Shares snap five days of falls on bargain-hunting

Reuters - Shares rose on Friday on bargain-hunting following five consecutive sessions of falls and after a top official said the Government would address concerns about a possible tax on trading stocks.

The Colombo Stock Index (CSI) rose 0.44 percent, or 28.16 points, to 6,436.28, but shed 0.8 percent for the week. On Thursday, it had closed at its lowest level since 18 April.

“The market bounced back with bargain hunting,” Softlogic Stockbrokers Deputy CEO Hussain Gani said.

“The Government addressing tax concerns also helped to install investor confidence,” he added.

The CSI had shed 3.9 percent through Thursday since 27 July and slid in 14 out of 15 sessions due to a string of disappointing June-quarter corporate results and speculation that the new tax reform bill will impose a tax on trading stocks.

Deputy Finance Minister Eran Wickramaratne said on Thursday that these concerns would be addressed before the proposed bill is passed in Parliament.

Foreign investors bought shares worth a net Rs. 42.9 million ($279,843.44) on Friday, extending the year-to-date net inflow to Rs. 27.7 billion.

Turnover was Rs. 622.4 million, less than this year’s daily average of around Rs. 870 million.

Shares of Lanka ORIX Leasing Co PLC gained 4.5 percent, Sri Lanka Telecom PLC ended up 2.7 percent, Hatton National Bank PLC ended 1.2 percent firmer and conglomerate John Keells Holdings PLC rose 0.3 percent.