Stock market’s gain persist

Reuters: Shares closed at their highest in nearly three weeks on Friday, rising for a fourth straight session on purchases by foreign investors and on quarter-end window dressing, stockbrokers said.

The Colombo stock index ended 0.36% firmer at 6,061.94, its highest close since 13 March. The index rose 1.1% on week, posting its first weekly gain in six.

“We are seeing some significant improvement in investor confidence. Local institutions have started to come in to the market. They may be feeling that this is the right time as the market has bottomed out,” said Dimantha Mathew, Head of Research, First Capital Equities Ltd.

“Retail investors are still on wait and see, but the bigger players are getting in with heavy foreign participation.”

Foreign investors net bought shares worth Rs. 1.06 billion ($6.99 million) on Friday, the highest net foreign purchases since 8 December, raising the year-to-date net foreign inflow to Rs. 5.64 billion in equities.

Turnover stood at Rs. 1.74 billion, well above this year’s daily average of Rs. 734.8 million.

Shares of biggest listed lender Commercial Bank of Ceylon Plc climbed 1.57%, while Ceylinco Insurance Plc jumped 6.46% and conglomerate John Keells Holdings Plc rose 0.66%.