Stock market rebounds as foreign investors continue to pick blue chips

Reuters: Shares closed higher on Wednesday after two straight sessions of losses as foreign investors actively bought into blue chips, with the net stock buys touching nearly Rs. 15 billion so far in the year.

Foreign investors bought shares for a 24th straight session, buying a net Rs. 318.6 million ($ 2.10 million) worth of stocks on Wednesday.

They have snapped up a net Rs. 12.4 billion worth equities during the period and a net Rs. 14.9 billion worth year-to-date.

The Colombo stock index ended 0.36% firmer at 6,516.26.

The index has climbed 9.1% in the 19 sessions through Wednesday, having risen for 16 sessions in that period.

It added 2.1% last week, marking its fourth week of gains.

“Foreigners are very active and buying aggressively, while local investors are cautiously waiting to buy,” said Dimantha Mathew, head of research, First Capital Equities Ltd.

Turnover stood at Rs. 1.44 billion, higher than this year’s daily average of Rs. 882 million.

Market heavyweight John Keells Holdings gained 1.1%, while Ceylon Tobacco Company rose 0.6%.