CSE hits over 3-month high; blue-chips lead

Thursday, 22 February 2018 00:00 - - {{hitsCtrl.values.hits}}

Reuters : Sri Lankan shares ended higher for a fifth straight session yesterday, led by blue-chips on hopes of political stability after two key parties decided to remain in the ruling coalition, allaying fears of a government collapse.

The Colombo stock index ended 0.32% firmer at 6,598.73, its highest close since 6 November 2017.

“Interestingly, we saw some buying interest in blue chips and especially foreign interest is picking up,” said First Capital Holdings Research Head Dimantha Mathew. “Now that things are settling down, buying interest in blue-chips is improving with continued retail buying.”

The two key coalition parties that were routed in a local election last week, sparking concerns of political instability, yesterday told the parliament that their government will continue.

Turnover stood at Rs. 829.4 million ($ 5.35 million), marginally below the year’s daily average of Rs. 849.4 million.

Foreign investors bought a net Rs. 171.6 million worth of shares yesterday, extending net foreign buying to Rs. 5.8 billion worth of equities so far this year.

Shares in Dialog Axiata PLC ended 0.7% higher, while conglomerate John Keells Holdings PLC gained 0.5%. The biggest-listed lender, Commercial Bank of Ceylon PLC, closed 1.5% firmer.

The index dropped 0.13% last week, ending a three-week winning streak.