Bourse marks 3-week closing high

Wednesday, 31 January 2018 00:00 - - {{hitsCtrl.values.hits}}

Reuters: Shares notched a near three-week closing high on Tuesday led by market heavyweight John Keells Holdings, but political uncertainty ahead of a local election next month weighed on sentiment, dealers said.

Sri Lanka will hold a long-delayed Local Government election on 10 February.

President Maithripala Sirisena in an election rally over the weekend said he was ready to form a new government with his Sri Lanka Freedom Party (SLFP), breaking away from the current coalition – a comment that exacerbated worries about the future of the Coalition Government.

“Nobody knows if the President is making statements for political reasons or if he actually means it. So investors are waiting for some clear direction and political stability after the polls,” said Acuity Stockbrokers CEO Prashan Fernando.

The Colombo stock index ended up 0.35% at 6,476.41, its highest close since 11 January. The index rose 0.19% last week, recording its first weekly gain in three.

Shares in conglomerate John Keells Holdings Plc closed up 1.1%, while Janashakthi Insurance Company Plc rose 17.7%. Dialog Axiata Plc ended 1.5% higher.

Foreign investors bought a net Rs. 18.5 million worth of shares on Tuesday, extending the year-to-date net foreign inflow to Rs. 4.04 billion worth of equities.

Sri Lanka’s stock, bond and foreign exchange markets are closed on Wednesday for a Buddhist religious holiday. Markets will resume trading on Thursday.