Bourse marks 4-week closing high on foreign buying

Reuters: Shares gained for a fourth straight session on Tuesday to mark a four-week closing high on foreign buying in blue-chips.

Foreign investors bought a net Rs. 129.9 million ($ 848,188) worth of shares on Tuesday, extending the year-to-date net foreign inflow to Rs. 17.1 billion.

The Colombo stock index ended up 0.29% at 6,428.07, its highest close since 18 August.

“Foreign investors were active today, helping to push the turnover above one billion. Foreign interest were buying blue-chips and that helped boost local investor confidence,” said Hussain Gani, deputy CEO of Softlogic Stockbrokers.

Shares of Ceylon Cold Stores Plc rose 1.5%, while Trans Asia Hotel Plc ended 6.7% firmer and conglomerate John Keells Holdings Plc gained 0.2%.

Turnover stood at Rs. 1.6 billion, well above this year’s daily average of around Rs. 922.4 million.

Recent block deals also helped boost sentiment, traders said.

Last 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 from Retail Holdings (Sri Lanka) BV a subsidiary of Retail Holdings NV.

Hayleys in a corporate disclosure said on Friday that Hayleys Plc and its subsidiaries purchased 231.9 million shares or 61.73% of Singer Sri Lanka Plc at a price of Rs. 47 per share.

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