Bourse up as investors snap up battered stocks; JKH leads

Reuters: Shares ended firmer on Thursday as investors bought in some select battered shares such as conglomerate John Keells Holdings Plc, after recent falls, but foreign outflows from the island nation’s risky assets continued.

The main stock index ended up 0.46%, or 33.04 points, at 7,273.14 on Thursday, further moving away from its lowest close since 23 July hit on Tuesday.

The index had lost 3.2% in the two sessions through Tuesday as foreign investors sold off risky assets on fears of a China-led global economic slowdown, and on selling by retail investors for month-end settlements.

“The market is recovering after a sharp fall due to global worries,” said SC Securities CEO Harsha Fernando said in Colombo.

Foreign investors were net sellers of Rs. 456.6 million ($ 3.40 million) worth of shares on Thursday, extending the year to date net foreign outflow to Rs. 3.2 billion.

Turnover stood at Rs. 1.44 billion, more than this year’s daily average of Rs. 1.17 billion.

Shares in John Keells rose 1.66%, while Dialog Axiata Plc advanced 1.79%.