Stock market up for ninth straight session on foreign buying

Reuters - Shares rose for a ninth straight session on Friday to close at their highest in nearly four months helped by positive sentiment over continued foreign buying in blue chip stocks.

The Colombo stock index ended 0.69% firmer at 6,292.94, its highest close since 14 December. The index rose 3.8% during the week, posting its second weekly gain in seven.

The index has climbed 5.32% in the last nine sessions through Friday.  “Foreign, institutional, and high-net worth investors are buying shares. That helped to move the market. Retailers are still on the sideline,” said SC Securities Head of Research Yohan Samarakkody.

“The underlying fundamentals have not changed as yet. The economic outlook is gloomy with high interest rates. But all that negativity have factored in. With the market reaching an oversold level, it became attractive to investors who have the holding capacity and they are capitalising on that situation.”

Foreign investors net-bought shares worth Rs. 1.01 billion ($6.66 million) on Friday, raising the year-to-date net foreign inflow to Rs. 7.34 billion in equities. They have net bought 4.85 billion worth equities in the past 14 sessions.

Turnover stood at Rs. 2.04 billion, its highest since 28 March and well above this year’s daily average of Rs. 764.4 million.

Shares of Ceylon Cold Stores PLC surged 5.85%, Ceylon Tobacco Company PLC gained 0.89%, while conglomerate John Keells Holdings PLC climbed 0.68%.