Shares end at 1-yr high on foreign buying, trade concession

REUTERS: Sri Lankan shares hit a one-year closing high yesterday with foreign investors buying blue chips such as John Keells Holdings PLC and as the island nation regained a trade concession from the European Union (EU).
The EU yesterday said Sri Lanka has regained a lucrative trade concession, mainly for its top exports garments.
The Colombo stock index ended 0.49 percent firmer at 6,692.33, its highest close since May 16, 2016. The index added 0.5 percent last week, its seventh straight weekly gain.
Turnover stood at Rs.1.17 billion, more than this year’s daily average of Rs.889.8 million.
“Today the foreigners got active and with that we have seen retail investor’s also returning,” said First Capital Holdings PLC Head of Research Dimantha Mathew.
Foreign investors net bought shares worth Rs.281.05 million, extending the year-to-date net foreign inflows to Rs.17.08 billion.
Reduction of 36-38 basis points in T-bill yields in the last three weeks, stable currency on expectation of inflows from foreign borrowing and an International Monetary Fund (IMF) statement on the disbursement of the third tranche of a US $ 1.5 billion loan, have helped boost sentiment, analysts said.
Shares in Dialog Axiata PLC rose 4.31 percent while Sri Lanka Telecom PLC rose 2.35 percent and John Keells Holdings PLC gained 
0.85 percent.