Stocks edge up as foreign investors return

REUTERS: Sri Lankan shares rose slightly yesterday and posted their highest close in nearly two weeks as investors picked up beverage and telecom stocks, and foreign investors returned to the market following a communal violence last week, dealers said.

Foreign investors bought a net Rs.1.2 billion worth of shares, extending the year-to-date net foreign inflow to Rs.7.3 billion worth of equities.

Analysts said local and foreign investors returned to the market a week after a wave of anti-Muslim attacks by Sinhalese Buddhist hardliners in the central highlands district of Kandy.

The Colombo stock index ended 0.11 percent firmer at 6,554.83.

“It is a positive sign that both locals and foreigners are buying after a long wait,” said First Capital Holdings Research Head Dimantha Mathew.

Turnover was Rs.2.5 billion yesterday, the highest since February 26 and more than double of this year’s daily average of around Rs.960.4 million. Shares in Asian Hotels and Properties PLC ended up 3.8 percent, Dialog Axiata PLC gained 1.5 percent and Singer Sri Lanka PLC rose 2.7 percent.