Shares retreat from 5-1/2-week closing low; JKH leads

Thursday, 15 June 2017 00:00 - - {{hitsCtrl.values.hits}}

Reuters: Shares on Wednesday bounced from their five-week closing low hit in the previous session, led by gains in conglomerate John Keells Holdings Plc and with foreign investors buying into the island nation’s risky assets.

The Colombo stock index ended 0.32% firmer at 6,669.73, edging up from its lowest close since May 5 hit on Tuesday.

Last week, the bourse dropped 0.3%, posting its third consecutive weekly decline.

“Investors bought John Keells Holdings heavily and retail sentiment also improved,” said Prashan Fernando, CEO, Acuity Stockbrokers in Colombo.

Turnover was Rs. 1.06 billion ($6.95 million), above this year’s daily average of Rs. 899.4 million.

Foreign investors were net buyers of Rs. 18.9 million worth of shares, extending the year-to-date net foreign inflow to Rs. 20.7 billion.

Analysts said investors are still waiting to see the impact of the recent floods and landslides, caused by the worst torrential rains in 14 years, killing over 200 people and devastating crops.

Inflation could rise in the short term, especially due to crop damage and difficulties in distributing fresh food produce and staple food items, analysts said.

Conglomerate John Keells Holdings Plc rose 3.36%, while the country’s biggest listed lender Commercial Bank of Ceylon Plc ended 0.89% higher.