Shares end at two-week high on bargain-hunting

Friday, 18 March 2016 00:48 - - {{hitsCtrl.values.hits}}

Reuters: Sri Lankan shares rose for a second straight session on Thursday and closed at their highest level in two weeks as local investors bought beaten-down stocks.

The benchmark share index ended 0.78% firmer at 6,068.17, its highest close since 2 March.

However, foreign investors sold Rs. 614.9 million ($4.24 million) worth of shares on Thursday, the highest outflow since 19 February, amid concerns over a higher budget deficit and economic growth. Offshore investors have dumped Rs. 1.27 billion worth of shares so far this year.

“Despite the negative outlook, it seems that a part of the recovery is driven by new investors who have entered the market,” said Softlogic Stockbrokers research head Danushka Samarasinghe.

Sri Lanka’s economy is expected to grow 5.3% in 2016, data from the state statistics office showed, but analysts say tight monetary and fiscal policies may curb its growth.

The $82.2 billion economy expanded at a sluggish 2.5% in the December quarter, down from an upwardly revised 5.6% in the previous quarter.

Analysts and economists worry slower growth could reduce corporate earnings of some listed firms.

Turnover stood at Rs. 1.49 billion ($10.3 million), more than double this year’s daily average of Rs. 791.6 million.

Shares in Sri Lanka Telecom Plc jumped 3.54% while John Keells Hotels Plc gained 4.27% and Nestle Lanka Plc rose 0.47%.

Discover Kapruka, the leading online shopping platform in Sri Lanka, where you can conveniently send Gifts and Flowers to your loved ones for any event including Valentine ’s Day. Explore a wide range of popular Shopping Categories on Kapruka, including Toys, Groceries, Electronics, Birthday Cakes, Fruits, Chocolates, Flower Bouquets, Clothing, Watches, Lingerie, Gift Sets and Jewellery. Also if you’re interested in selling with Kapruka, Partner Central by Kapruka is the best solution to start with. Moreover, through Kapruka Global Shop, you can also enjoy the convenience of purchasing products from renowned platforms like Amazon and eBay and have them delivered to Sri Lanka.