Shares hit 3-week closing high as blue chips gain

REUTERS: Sri Lankan shares rose for a third straight session yesterday and ended at a three-week closing high as investors picked up diversified and telecom shares, brokers said.

The Colombo stock index ended 0.12 percent firmer at 6,409.65, its highest close since August 28.

The bourse rose 0.4 percent last week, ending an eight-week long losing streak.
“We are yet to see the bullish trend, but it is slowly coming into the market with some foreign buying,” said First Capital Holdings Head of Research Dimantha Mathew.“The Locals are a bit more conservative and are looking at only blue chips yet.”

Shares of conglomerate John Keells Holdings PLC gain 1.2 percent while Sri Lanka Telecom PLC ended 4.6 percent firmer, Melstacorp Ltd rose 1.7 percent and Dialog Axiata PLC ended 0.9 percent higher. Foreign investors net bought Rs.97.7 billion worth of shares yesterday, extending the year-to-date net foreign inflow to Rs.17 billion worth of equities.

Turnover stood at Rs.459.2 million, half of this year’s daily average of around Rs.918.3 million.

According to traders, recent block deals also helped boost the market sentiment.

On Wednesday after market hours, diversified conglomerate Hayleys PLC said it had agreed to purchase 61.73 percent of Singer Sri Lanka PLC for Rs.10.9 billion from Retail Holdings (Sri Lanka) BV a subsidiary of Retail Holdings NV.

Hayleys in a corporate disclosure said on Friday that Hayleys PLC and its subsidiaries purchased 231.9 million shares or 61.73 percent of Singer Sri Lanka PLC at a price of Rs.47 per share.

Last week, top mobile phone operator Dialog Axiata PLC said that it acquired 80.34 percent of Colombo Trust Finance PLC for Rs.1.072 billion.