Stock market climbs to highest close in nearly 3 weeks

Reuters: Shares rose for the fourth straight session on Monday to their highest close in nearly three weeks, led by gains in banking and beverage stocks.

The Colombo stock index ended 0.18% higher at 6,091.45. It rose 0.4% last week, marking the second straight weekly gain.

The index, however, lost 1.1% in August, having hit its lowest close since March 2017 on 28 August. The bourse is down 4.4% so far this year.

The day’s turnover was at Rs. 404.2 million ($ 2.5 million), nearly half of this year’s daily average of Rs. 810.7 million.

Foreign investors sold a net Rs. 5 million of shares on Monday, extending the net foreign selling so far this year to Rs. 4.2 billion worth of shares.

Ceylon Tobacco Company PLC shares ended 0.2% higher, while Dialog Axiata PLC closed 1.7% firmer. Lanka ORIX Leasing Company PLC gained 3.5%, and Hatton National Bank PLC ended 1.3% higher.

Sri Lankan companies posted a 4% total earnings growth in the June quarter from a year earlier, helped by financials, beverage shares, telecommunications, and power and energy sectors, CT CLSA Securities Ltd. said in a research note.