Shares mark 4-week closing high on foreign buying

REUTERS : Sri Lankan shares gained for a fourth straight session yesterday to mark a four-week closing high on foreign buying in blue-chips.

Foreign investors bought a net Rs.129.9 million worth of shares yesterday, extending the year-to-date net foreign inflow to Rs.17.1 billion. The Colombo stock index ended up 0.29 percent at 6,428.07, its highest close since Aug. 18.

“Foreign investors were active today, helping to push the turnover above one billion. Foreign investors were buying blue-chips and that helped boost local investor confidence,” said Hussain Gani, Deputy CEO of Softlogic Stockbrokers.

Shares of Ceylon Cold Stores PLC rose 1.5 percent, while Trans Asia Hotel PLC ended 6.7 percent firmer and conglomerate John Keells Holdings PLC gained 0.2 percent.

Turnover stood at Rs.1.6 billion, well above this year’s daily average of around Rs.922.4 million. Recent block deals also helped boost sentiment, traders said. Last 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 (SriLanka) 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 R
s.47 per share. Last week, top mobile phone operator Dialog Axiata PLC said it acquired 80.34 percent of Colombo Trust Finance Plc for Rs.1.072 billion.