Shares snap losses to end higher, but foreign investors sell

Reuters: Shares snapped three straight sessions of losses on Wednesday to edge up from a three-week closing low despite foreign investor outflows, as investors picked up telecom and diversified shares.

The benchmark stock index rose 0.2%, or 12.91 points, to 6,583.49, edging up from its lowest close since 4 May hit on Tuesday. It fell 1.12% last week, its first weekly fall in seven weeks.

“Market ended in the green zone, but the foreign selling is worrying,” said Yohan Samarakkody, Head of Research, SC Securities Ltd.

Foreign investors net sold Rs. 446.4 million ($3.05 million) worth of shares on Wednesday, extending the year-to-date net foreign outflow to Rs. 4.71 billion worth of shares.

Shares in Dialog Axiata Plc rose 0.89% while Hemas Holdings Plc rose 2.58%, pushing up the overall index.

Top conglomerate John Keells Holdings, which on Tuesday announced a share subdivision, gained 0.2%. After the market closed, Keells posted a 13% fall in March quarter earnings.

Turnover stood at Rs. 952.2 million, more than this year’s daily average of around Rs. 797.8 million rupees.