Bourse gains to over 1-week closing high

Reuters: Shares ended at more than a one-week closing high on Thursday, helped by gains in beverage and diversified shares, even as investors adopted a wait-and-watch approach to assess the impact of a new tax bill, brokers said.

The Colombo stock index ended 0.14% firmer at 6,381.46, its highest close since 4 September. It fell 0.2% last week, its eighth straight weekly drop.

“Market is slow and steady as most of the investors are on a wait-and-see approach as they want more clarity on the tax bill and direction from the budget,” said Reshan Kurukulasuriya, the Chief Operating Officer of Richard Pieris Securities Ltd.

Finance Minister Mangala Samaraweera is scheduled to present the Government’s 2018 national budget on 9 November.

The Parliament passed tax reforms on 7 September that should simplify the tax system, widen the tax base and increase government revenue, as agreed with the International Monetary Fund in exchange for a $ 1.5 billion, three-year loan.

Foreign investors net bought Rs. 69.8 million worth of shares on Thursday, extending their year-to-date net inflow to Rs. 27.7 billion worth of equities.

Turnover stood at Rs. 346.5 million, well below this year’s daily average of around Rs. 859.1 million.

Shares of Ceylon Tobacco Company Plc rose 4.2%, while Dialog Axiata Plc ended 1.8% higher and conglomerate John Keells Holdings Plc rose 0.5%.

On Wednesday after market hours, diversified conglomerate Hayleys Plc said it had agreed to purchase 61.73% of Singer Sri Lanka Plc for Rs. 10.9 billion.

On Tuesday, top mobile phone operator Dialog Axiata Plc said that it acquired 80.34% of Colombo Trust Finance Plc for Rs. 1.072 billion ($ 7 million).