Bourse ends at more-than-5-month high

Reuters: Shares ended at their highest in more than five months on Thursday, as investors picked up risky assets on expectations of strong corporate earnings and political stability after the 17 August Parliamentary polls.

The main stock index ended up 0.25% at 7,332.05, its highest since 13 February.

Turnover was at Rs. 1.78 billion ($13.33 million), more than this year’s daily average of Rs. 1.09 billion.

“The market ended the holiday-shortened week on a positive note with local investors topping the turnover charts. Institutional and high net worth activity was seen,” TKS Securities said in a note to investors.

Gains were led by large-caps. Ceylon Tobacco Company Plc rose 0.98% after it reported a 16.6% rise in net profit for April-June, while Ceylon Cold Stores Plc gained 14.10% and Nestle Lanka Plc rose 0.53%.

Foreign investors, who have bought a net Rs. 955.9 million worth of shares so far this year, were net sellers of Rs. 444.8 million on Thursday.

Analysts expect local companies to post strong results for the April-June quarter.

Expectations of political stability after the 17 August Parliament elections also helped sentiment, they said.

Markets will be closed on Friday for a special Buddhist religious holiday.