stock market sri lanka

Sri Lankan stocks close at more than 1-wk high

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

SEPTEMBER 29, 2017

COLOMBO, Sept 29 (Reuters) – Sri Lankan shares edged higher for a second straight session and closed at a more than one-week high on Friday as investors bought beverage and manufacturing shares while continued foreign buying in the market underpinned positive sentiment, brokers said.

The Colombo stock index ended 0.07 percent up at 6,438.24, its highest close since Sept. 21.

The bourse rose 0.2 percent for the week, marking its third straight weekly gain.

Foreign investors bought a net 188 million rupees ($1.23 million) worth of shares on Friday extending the year-to-date net foreign inflow to 18 billion rupees worth of equities.

Turnover stood at 782.3 million rupees, compared with this year’s daily average of about 914.8 million rupees.

“We were expecting margin calls to come in being the month end, but we did not see that,” said Dimantha Mathew, head of research at First Capital Holdings.

“Domestic investor participation was high and they were looking to buy blue chips while foreigners were also active.”

Shares of Lion Brewery Plc gained 5.2 percent, while Sampath Bank Plc advanced 1.8 percent and Richard Pieris Plc rose 3.8 percent.

On Tuesday, the Sri Lankan central bank held its key rates steady, saying past steps were keeping inflation and credit growth under control, as policymakers focus on supporting an economy hit by extreme weather.

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.<