Bourse rebounds to 1-week high; JKH gains

Saturday, 1 March 2014 06:42 - - {{hitsCtrl.values.hits}}

Reuters: Shares gained for a second straight session on Friday, moving further away from a near 10-week closing low, led by top conglomerate John Keells Holdings despite foreigners investors selling risky assets. The main stock index gained 1.15%, or 67.50 points, to close at 5,940.31, its highest since 21 February. It hit a near 10-week closing

low on Tuesday. The index has dropped nearly 7% in the last 15 sessions through Tuesday. It returned to its neutral territory from an oversold zone, Thomson Reuters data showed. Foreign investors sold a net Rs. 43.4 million ($331,200) worth of shares on Friday, extending the net outflow in the past 15 sessions to Rs. 5.43 billion as some offshore funds exited the market. It has seen a net 4.04 billion rupees of foreign outflows in so far 2014, after enjoying net inflows of Rs. 22.88 billion last year. Analysts said investors were concerned about further outflows, though local investors are still optimistic about risky assets due to falling interest rates. Top conglomerate John Keells Holdings gained 4.10% to Rs. 220.70 as local and foreign investors snapped up the battered share. The day’s turnover was Rs. 851.6 million, less than this year’s daily average of about Rs. 1.09 billion.