Stocks snap three sessions of falls

Friday, 23 March 2018 00:00 - - {{hitsCtrl.values.hits}}

Reuters: Shares ended marginally higher on Thursday, snapping three straight sessions of falls, as investors bought beverage and diversified stocks, brokers said.

The Colombo stock index rose 0.09% to 6,451.51, after it posted an eight-week closing low in the previous session.

However, investors remain worried about the island nation’s slower economic growth, said analysts.

Sri Lanka’s economy grew by 3.1% in 2017, the slowest pace in 16 years and well below the 4.5% seen in 2016, revised government data released on Tuesday showed.

“We saw some of the positivity coming in after the release of GDP data. But investors are concerned over the lower growth,” said Reshan Kurukulasuriya, chief operating officer, Richard Pieris Securities (Pvt) Ltd.

“We can see some high net worth investors collecting with the index trading below 6,500.” Turnover was Rs. 1.4 billion ($ 8.97 million), more than this year’s daily average of around Rs. 936.4 million.

Shares in Ceylon Tobacco Co Plc rose 2.9%, Ceylon Cold Stores Plc climbed 4.1% and conglomerate John Keells Holdings Plc closed 0.3% higher.

Foreign investors sold a net Rs. 24.9 million worth of shares, but they have been net buyers of Rs. 7.3 billion worth of equities so far this year.