Bourse recovers from near 5-week closing low

Reuters: Shares edged up on Wednesday, rebounding from near five-week closing low hit in the previous session as investors bought in some select shares after two days of losses, but further gains were capped due to foreign selling in some stocks.



The main stock index was up 0.12%, or 8.52 points, at 7,240.10 on Wednesday, edging up from its lowest close since 23 July hit on Tuesday.

The main stock index lost 3.2% in the two sessions through Tuesday as foreign investors sold off risky assets on fears of a China-led global economic slowdown, and on selling by retail investors for month-end settlements.

Foreign investors were net sellers of Rs. 1.21 billion worth of shares on Wednesday, extending the year to date net foreign outflow to Rs. 2.75 billion.

Shares in John Keells Holdings Plc, which saw net foreign outflow of six million shares on Wednesday ended down 2.72%.

Turnover stood at Rs. 2.37 billion, twice of this year’s daily average of Rs. 1.16 billion.

“The market is recovering with some selected buying,” said Dimantha Mathew, a research manager at First Capital Equities Ltd.

“There was heavy foreign selling in Keells,” Mathew added.

Shares in Dialog Axiata Plc rose 0.90%, while Sunshine Holdings Plc jumped 9%, helping the index to remain up.