Stocks climb from 14-mth low, snap 10-session losing run

Reuters: Shares ended slightly firmer on Thursday, snapping a 10-session losing streak, as local investors bought battered beverage and telecom shares.

The Colombo stock index gained 0.18% to close at 6,229.06, edging higher from its lowest close since 5 April 2017 hit on Wednesday.

“Market is up on local buying, mostly its bargain-hunting by local investors as the market has dropped too low in very little time,” said Softlogic Stockbrokers Deputy CEO Hussain Gani.

Turnover stood at Rs. 416.2 million ($ 2.6 million), well below this year’s daily average of Rs. 948 million.

Foreign investors sold equities net worth Rs. 34 million, extending the year-to-date net foreign outflows to Rs. 861.6 million of shares so far this year.

Shares of Ceylon Tobacco Co Plc rose 1.8%, while Sri Lanka Telecom Plc ended 3.8% higher. Distillers Co of Sri Lankan Plc gained 1.5% and Melstacorp Ltd. ended 1.9% firmer.

Finance Minister Mangala Samaraweera on Tuesday said the country’s economy was likely to grow around 4.5% this year, below the Central Bank estimate of 5% in a sign political uncertainty is curbing a more robust recovery after a weak 2017.

The International Monetary Fund (IMF) on Wednesday said Sri Lanka’s economy remains vulnerable to adverse shocks because of sizable public debt and large refinancing needs.