Bourse snaps four sessions of falls

Reuters: Shares closed slightly firmer on Friday, snapping four straight sessions of falls, on foreign investor buying in select stocks.

Analysts said investors are waiting to see the real impact of the recent floods and landslides caused by the worst torrential rains in 14 years, killing over 200 people and devastating crops.

The Colombo stock index ended up 0.07% at 6,668.96, edging up from its lowest close since 30 May hit on Wednesday.

However, it fell 0.3% this week in its third straight weekly decline.

“Foreign trade boosted the market. They only bought in some select counters and they did not have enough quantities. Local investors are waiting for some directions amid uncertainty over how the Qatar issue will impact the Sri Lankan economy and oil prices,” said First Capital Holdings PLC CEO Jaliya Wijeratne.

Turnover was Rs. 534.9 million ($3.50 million), little higher than half of this year’s daily average of Rs. 897.6 million.

Inflation could rise in the short term, especially due to crop damage and difficulties in distributing fresh food produce and staple food items, analysts said.

Foreign investors were net buyers of Rs. 131.3 million worth of shares, extending the year-to-date net foreign inflow to Rs. 20.2 billion.

Shares of BRAC Lanka Finance Plc rose 18%, Bukit Darah Plc ended 6.3% firmer and the country’s biggest listed lender, Commercial Bank of Ceylon Plc, gained 1.57%.