Stock market gains for 2nd day on foreign investor buying

Reuters - Shares rose for a second straight session on Friday as foreign investors bought into risky assets with some improvements in the communal violence-hit district of Kandy.

Police said on Thursday it had arrested the suspected leader and nine others suspects behind a wave of anti-Muslim attacks by Sinhalese Buddhist hardliners in the central highlands region this week.

“With the situation returning to normalcy we saw increased activities. We saw foreigners getting activated. Things are slightly improving and investors are waiting to see the real situation,” First Capital Holdings Head of Research Dimantha Mathew said, referring to inactive local investors.

The Colombo Stock Index ended 0.46% firmer at 6,551.19. Turnover was Rs. 868.9 million ($5.59 million), less than this year’s daily average of around Rs. 950 million.

Foreign investors bought a net Rs. 61.3 million worth of shares on Friday, extending the year-to-date net foreign inflow to Rs. 6.1 billion worth of equities so far this year.

Shares in Ceylinco Insurance PLC climbed 11.25%, Melstacorp Ltd rose 2.9% and Janashakthi Insurance Co PLC ended 7.7% firmer.