Bourse closes at more than 1-week high

Saturday, 30 September 2017 00:00 - - {{hitsCtrl.values.hits}}

Reuters: Shares edged higher for a second straight session and closed at a more than one-week high on Friday as investors bought beverage and manufacturing shares while continued foreign buying in the market underpinned positive sentiment, brokers said.

The Colombo stock index ended 0.07% up at 6,438.24, its highest close since 21 September.

The Bourse rose 0.2% for the week, marking its third straight weekly gain.

Foreign investors bought a net Rs. 188 million ($1.23 million) worth of shares on Friday extending the year-to-date net foreign inflow to Rs. 18 billion worth of equities.

Turnover stood at Rs. 782.3 million, compared with this year’s daily average of about Rs. 914.8 million.

“We were expecting margin calls to come in being the month end, but we did not see that,” said Dimantha Mathew, Head of Research at First Capital Holdings.

“Domestic investor participation was high and they were looking to buy blue chips while foreigners were also active.”

Shares of Lion Brewery Plc gained 5.2%, while Sampath Bank Plc advanced 1.8% and Richard Pieris Plc rose 3.8%.

On Tuesday, the Central Bank held its key rates steady, saying past steps were keeping inflation and credit growth under control, as policymakers focus on supporting an economy hit by extreme weather.