Stock market snaps 7-session losing streak

Saturday, 20 January 2018 00:03 - - {{hitsCtrl.values.hits}}

Reuters - Shares snapped a seven-session streak of declines on Friday, recovering from a near three-week closing low hit in the previous session, as investors picked up battered blue-chip and banking shares.

However, foreign investors, who have been net buyers of Rs. 2.7 billion worth shares so far this year, sold equities worth net Rs. 62.1 million ($403,640) on Friday.

They bought equities worth Rs. 18.5 billion last year and Rs. 633.5 million in 2016.

The Colombo Stock index ended 0.52 percent higher at 6,443.50. In the previous session, it closed at its lowest since 29 December.

The bourse shed 2 percent in the past seven sessions, and dropped 0.47 percent for the week recording its second straight weekly fall.

“Today we are seeing a lot of foreign activities, but the local investors are buying blue-chip shares,” First Capital Holdings Head of Research Dimantha Mathew said.

“It looks like local, mainly high net worth investors, are eager to buy now,” he added.

Turnover stood at Rs. 1.7 billion, nearly twice of last year’s daily average of Rs. 915.3 million.

After the market close, diversified company Hemas Holdings PLC said it will take over 75.1 percent of leading stationery manufacturer Atlas Axillia Co (Pvt) Ltd for Rs. 5.7 billion.

Shares in conglomerate John Keells Holdings PLC ended 2.5 percent higher, while Hemas Holdings closed 2.5 percent up, and Sri Lanka Telecom PLC ended 2.5 percent higher.