Bourse up but turnover at 3-week low

Reuters: Stocks edged up on Friday, after two successive sessions of losses, but the trading volume slumped to a near three-week low as investors awaited direction from the budget and corporate earnings.

The benchmark index of the Colombo Stock Exchange finished up 0.23% at 6,582.34. “Investors are still positive and the outlook is bullish. Thin volume is because market interest rates are rising on tight liquidity,” said Dimantha Mathew, Head of Research, First Capital Equities Ltd.

“Going forward, better earnings in construction sector and select blue-chips will boost sentiment.”

Turnover was Rs. 387.3 million ($2.65 million), its lowest since 19 September, and around half of this year’s daily average of around Rs. 755 million.

Stockbrokers have said the market might see lower-trading volumes as many investors await direction from the budget, scheduled for 10 November and the Government’s long-term economic policy announcement.

Foreign investors bought a net Rs. 55.9 million worth of shares on Friday, but have sold a net Rs. 2.85 billion worth of equities so far this year.

Shares in top lender Commercial Bank of Ceylon gained 1.4%, while the leading mobile operator Dialog Axiata ended up 0.9%.