COLOMBO, June 1 Sri Lankan shares rose for a
second straight session on Thursday, posting their highest close
in nearly one week, in high turnover with foreign investors
buying into the island nations' risky assets.
Last week's floods and landslides that killed over 200
people, however, weighed on sentiment.
The extent of the damage is yet to be assessed, with the
country's main agricultural exports - tea and rubber - hit by
the worst torrential rains in 14 years.
Analysts said it is too early to evaluate the real impact of
the floods and landslides, though short-term disruptions in
rubber tapping and plucking of tea leaves and buds could lead to
a decline in output.
Inflation could rise in the short term, especially due to
crop damages and distribution difficulties with regard to fresh
food produce and staple food items, they said.
"Market lost a little bit of heat in the morning. But with
the foreign buying, the market picked up in the latter part of
the day," said Hussain Gani, deputy CEO at Softlogic
The Colombo stock index ended 0.29 percent stronger
at 6,693.68, its highest close since May 26.
Turnover was 1.03 billion rupees ($6.74 million), more than
this year's daily average of 902.4 million rupees.
Foreign investors were net buyers of 60 million rupees worth
of shares, extending the year-to-date net foreign inflow to
19.48 billion rupees worth of equities.
Shares of Ceylon Tobacco Co Plc jumped over 3
percent, conglomerate John Keells Holdings Plc gained
0.60 percent and Commercial Bank of Ceylon Plc, the
country's biggest listed lender, rose 1.04 percent.
($1 = 152.8000 Sri Lankan rupees)
(Reporting by Ranga Sirilal and Shihar Aneez; Editing by