CSE snaps losing spree to end higher

Wednesday, 1 August 2018 00:00 - - {{hitsCtrl.values.hits}}

Reuters: Shares ended their losing spree to close higher on Tuesday as investors picked up battered blue-chip stocks, but lean first-quarter corporate results dampened sentiment.

The Colombo stock index ended 0.3% firmer at 6,147.27, edging up from its lowest close since 12 July hit on Monday. The Bourse dropped 3.5% so far this year.

The index fell 0.47% last week, marking its first weekly decline in three.

Turnover stood at Rs. 409.9 million ($ 2.57 million), less than this year’s daily average of Rs. 856.1 million.

“We can see the local buying interest coming in to the market at the psychological support level of 6100 levels,” said Dimantha Mathew, head of research, First Capital Holdings.

“It is a good sign that the selling pressure is not there and we can see some select buying interest coming in to the market.”

Foreign investors sold equities net worth Rs. 731,474 on Tuesday, extending the year-to-date net foreign outflow to Rs. 2.5 billion worth of equities so far this year.

A downward revision in economic growth estimate earlier this month by the Central Bank hurt sentiment, analysts 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 Nestle Lanka Plc ended 2.9% higher, while Ceylon Tobacco Company Plc ended 1.3% firmer, Ceylinco Insurance Plc closed 3.1% up and Carson Cumberbatch Plc ended up 0.9%.