Bourse edges up on buying in JKH

Wednesday, 24 June 2015 00:00 -     - {{hitsCtrl.values.hits}}

Reuters: Shares rose for a second straight session on Tuesday to a near one-week high, led by market heavyweight John Keells Holdings Plc, but trading was moderate due to political uncertainty ahead of the announcement of parliamentary polls.

The main stock index ended up 0.2%, or 14.31 points, at 7,053.96, its highest close since 18 June.

Turnover stood at Rs. 810.5 million ($ 6 million), below this year’s daily average of about Rs. 1.1 billion.

“Suddenly there was buying interest in Keells, helping the index to move up,” said Dimantha Mathew, research manager at First Capital Equities Ltd.

Shares in conglomerate John Keells closed up 3.65%.

“Not much of a movement otherwise, they (investors) are waiting for direction. They are waiting for elections.”

The market saw net foreign inflows of 73.3 million rupees on Tuesday, but foreigners have been net sellers of Rs. 3.4 billion in stocks over the past 20 sessions.

The Bourse has seen net inflows of Rs. 2.54 billion into equities so far in 2015.

Investors were confused due to a lack of direction on interest rates, economic policies and on the timing of the parliamentary election, analysts said.

President Maithripala Sirisena’s Government has said he would dissolve the Parliament once some crucial reforms, including an electoral bill, are passed, but is yet to fix a date for the election.