Stocks edge up on buying in blue chips

Saturday, 28 April 2018 00:01 - - {{hitsCtrl.values.hits}}

Reuters: Sri Lankan shares ended slightly firmer yesterday with block deals in blue chips pushing up the day’s turnover to a more than three-week high, although political uncertainty dampened investor appetite for risk assets, stockbrokers said.

The market has been waiting for signs of political stability after President Maithripala Sirisena suspended parliament until May 8. A cabinet reshuffle was expected on 23 April, but Government sources said it had been delayed.

Fitch Ratings said on 26 April that recent political developments in Sri Lanka have created some uncertainty over reform momentum and fiscal consolidation, and prolonged upheaval could undermine investor confidence ahead of large external debt maturities in 2019-22.

The Colombo stock index ended 0.14% firmer at 6,531.06. The index lost 0.15% on week.Shares of Distilleries Company of Sri Lanka PLC closed 4.3% higher, while Lanka ORIX Leasing Company PLC rose 1.6%. Conglomerate John Keells Holding PLC , which accounted for 58.8% of the day’s turnover, ended down 0.1%.

“Today, we saw a large turnover after long time coming from some crossings (block trades) in some blue chips. Other than that there were no big trades as most of the investors are still on the sidelines,” said First Capital Holdings PLC Research Assistant Manager Atchuthan Srirangan.

“The investors are still on the sidelines waiting to see the direction of the prevailing political uncertainty and the rupee currency.”

Turnover stood at Rs. 971.9 million ($6.17 million), the highest since April 4, but less than this year’s daily average of Rs. 1.1 billion.

Foreign investors sold shares worth a net Rs. 53 million on Friday, extending the year to date net foreign outflow to Rs. 938.6 million worth of equities so far this year.

Stock, bond and foreign exchange markets are closed on Monday (30 April) for a public holiday, and markets will resume trading on 1 May.