Investment in Sri Lanka

Sri Lankan shares hit near 3-wk closing high; post 1st weekly gain in 6

FIRST CAPITAL’S HEAD OF RESEARCH, DIMANTHA MATHEW, SPEAKS TO REUTERS

Fri Mar 31, 2017

Sri Lankan shares closed at their highest in nearly three weeks on Friday, rising for a fourth straight session on purchases by foreign investors and on quarter-end window dressing, stockbrokers said.

The Colombo stock index ended 0.36 percent firmer at 6,061.94, its highest close since March 13. The index rose 1.1 percent on week, posting its first weekly gain in six.

“We are seeing some significant improvement in investor confidence. Local institutions have started to come in to the market. They may be feeling that this is the right time as the market has bottomed out,” said Dimantha Mathew, head of research, First Capital Equities (Pvt) Ltd.

“Retail investors are still on wait and see, but the bigger players are getting in with heavy foreign participation.”

Foreign investors net bought shares worth 1.06 billion rupees ($6.99 million) on Friday, the highest net foreign purchases since Dec. 8, raising the year-to-date net foreign inflow to 5.64 billion rupees in equities.

Turnover stood at 1.74 billion rupees, well above this year’s daily average of 734.8 million rupees.

Shares of biggest listed lender Commercial Bank of Ceylon Plc climbed 1.57 percent, while Ceylinco Insurance Plc jumped 6.46 percent and conglomerate John Keells Holdings Plc rose 0.66 percent.

($1 = 151.7500 Sri Lankan rupees) (Reporting by Ranga Sirilal; Editing by Biju Dwarakanath)

The comments on this report are provided by the Capital Markets Research Unit of First Capital Holdings PLC an investment bank in Sri Lanka.

The company operates in the capital markets of Sri Lanka in government securities – treasury bills and bonds, stock brokering and share market investments, asset management, private wealth management,  retirement planning, personal financial planning, unit trust, margin trading, capital market research, trustee services, corporate finance advisory services including corporate debt structuring (debentures, trust certificates, commercial papers), valuations, restructuring, mergers and acquisitions, initial public offerings (IPOs) and project advisory.

The First Capital Group consists of First Capital Treasuries PLC, First Capital Limited, First Capital Markets Limited, First Capital Asset Management Limited and First Capital Equities (Private) Limited covering Colombo, Negombo, Matara, Kandy and Kurunegala.