Stock market gains for second session on John Keells

Reuters: Shares rose half a per cent on Friday, climbing for a second straight session, buoyed by gains in market heavyweight John Keells Holdings on bargain hunting.

The Colombo stock index ended 0.54% firmer at 6,483.55, recovering from its lowest close since 27 September hit on Wednesday.

It shed 2.6% in the five sessions through Wednesday on worries over new taxes on cash-rich telecom and banking sectors. It shed 1% this week.

“There was strong interest in Keells shares. The market is recovering after some unclear budget policies,” said First Capital Equities CEO Jaliya Wijeratne.

John Keells shares rose 2.3%, while Cargills (Ceylon) Plc climbed 2.4%.

Foreign investors, who have net bought equities worth Rs. 19.6 billion so far this year, net sold shares worth Rs. 92.6 million ($602,865) on Friday.

Finance Minister Mangala Samaraweera imposed new taxes on motor vehicles, telecoms, banks and liquor in a bid to boost revenues in its 2018 budget outlined last week, as the budget deficit for the current year slipped to 5.2% of the Gross Domestic Product.

Samaraweera imposed taxes on telecom towers and text messages, and introduced a debt repayment levy of 20 cents per 1,000 rupee bank transaction with effect from 1 April next year.

Turnover was Rs. 717.6 million on Friday, less than this year’s average of around Rs. 953.6 million.