Shares hit one-week closing high; beverages shares lead

Reuters: Stocks touched a one-week closing high on Tuesday, as investors picked up shares of beverages and telecom companies, brokers said.

The Colombo stock index finished 0.3% firmer at 6,590.50, its highest close since 16 October. Shares of Ceylon Cold Store Plc climbed 4.1%, while Hatton National Bank Plc rose 0.3% and Ceylon Brewery Plc ended 13.8% firmer.

“Market looks positive and we can see some big investors looking for opportunities to buy, and that’s the reason we see mergers and acquisitions these days, which have pushed the turnover levels,” said Reshan Kurukulasuriya, Chief Operating Officer of Richard Pieris Securities Ltd. “Retail investors are waiting to see the direction from the corporate results and the Budget.”

Finance Minister Mangala Samaraweera will present the 2018 Budget on 9 November.

Turnover stood at Rs. 743.5 million ($4.84 million), below this year’s daily average of Rs. 937.4 million.

Foreign investors net bought shares worth Rs. 275.4 million on Tuesday, extending the year-to-date net foreign inflow to Rs. 19.4 billion worth equities.