Bourse closes on the up

Saturday, 11 July 2015 00:00 - - {{hitsCtrl.values.hits}}

Reuters: Shares edged higher on Friday, gaining for a second session, led by market heavyweight John Keells Holdings Plc and Dialog Axiata Plc.

However, share sales by foreign investors continued for an eighth straight session.

Gains were capped as political uncertainty ahead of the 17 August Parliamentary elections dented investor appetite.

The main stock index ended up 0.53% or 37.07 points at 6,984.12. On Wednesday, it hit a three-month low.

“Investors picked up the battered shares,” said Reshan Wediwardana, Research Analyst at First Capital Equities Ltd. “Foreigners are exiting with political uncertainty and expecting another tapering in the US.”

The day’s turnover stood at Rs. 601 million ($4.50 million), much less than this year’s daily average of Rs. 1.06 billion.

The market saw a net foreign outflow of Rs. 231.05 million on Friday, extending net outflows for the past 32 sessions to Rs. 5.66 billion.

However, foreign investors have been net buyers of Rs. 282.2 million worth of shares so far this year.

Shares in John Keells rose 2.12%, pushing up the overall index.

President Maithripala Sirisena dissolved parliament on June 26 and scheduled elections for 17 August, in an effort to consolidate power and push through political reforms.