Shares end near 18-mnth high; foreign buying continues

Reuters: Stocks posted marginal gains on Tuesday and ended near an 18-month high hit last week as telecom shares rose, while foreign investors continued to buy the island nation’s risky assets.

Concerns over a proposed tax bill however weighed on overall investor sentiment, analysts said.

The Colombo stock index ended 0.02% up at 6,734.13, near its highest close since 7 January 2016.

The bourse climbed 0.47% last week and ended June with a 1.09% gain.

Foreign investors net bought Rs. 67.6 million ($ 440,104.17) worth of shares on Tuesday, extending their year-to-date net inflows to Rs. 22.4 billion worth of equities.

“Foreign interest is continuing in select blue chips,” said Deputy CEO at Softlogic Stockbrokers Hussain Gani.

Brokers said local investors have been waiting for some clarity on the proposed Inland Revenue legislation, which some companies expect will result in higher cost of production.

The IMF, which has long urged Sri Lanka to boost tax revenue through modernisation and simplification of its fiscal system, has urged the Government to submit to parliament a new Inland Revenue Act.

Turnover was Rs. 509.2 million, well below this year’s daily average of Rs. 922.9 million.

Shares of Carson Cumberbatch Plc rose 7.1% while Ceylon Cold Stores Plc ended 2.2% firmer and Dialog Axiata Plc rose 1.7%.