CSE hit 3-week high, mark second weekly gain in nine

Reuters: Sri Lankan shares rose yesterday to their highest close in three weeks and marked their second weekly gain in nine.

The Colombo stock index ended 0.13% firmer at 6,191.17, its highest close since 29 June. It rose 0.86% on the week, but has fallen 2.8% year to date.

Turnover was Rs. 207.1 million ($ 1.30 million) in the session, its lowest since July 10 and less than a quarter of this year’s daily average of Rs. 882.5 million.

Foreign investors bought equities net worth Rs. 26.2 million yesterday, but they have been net sellers of stocks worth Rs. 2.6 billion so far this year.

A downward revision in economic growth estimate by the Central Bank has hurt sentiment, analysts have said.

Economic growth in 2018 is likely to be between 4% and 4.5%, falling short of an earlier estimate of 5%, Central Bank Governor Indrajit Coomaraswamy said earlier this month.

Shares in Ceylinco Insurance PLC rose 3.4%, while Lanka ORIX Leasing PLC gained 2% and biggest listed lender Commercial Bank of Ceylon PLC ended 0.3% firmer.