COLOMBO Dec 8 Sri Lankan shares rose on
Thursday as a stake buy in Commercial Credit and Finance Plc
by a unit of Thailand's Group Lease Plc lifted
the mood while foreign investors bought domestic stocks and
turned net buyers so far in the year.
Group Lease Holdings Pte Ltd, a subsidiary of Thailand's
Group Lease Plc purchased 95.4 million shares or 29.99 percent
in Commercial Credit And Finance Plc, Asia Securities, which was
directly involved in the deal, said in a disclosure to the
The transaction was valued at 10.59 billion rupees ($71.31
million), according to a statement by Group Lease Holdings Pte
Foreign investors bought a net 11.7 billion rupees ($78.79
million) worth of shares on Thursday, reversing the year-to-date
net foreign outflow to 996.68 million rupees worth of net
investment in shares.
Turnover was 12 billion rupees, its highest since March 16,
2012, compared with this year's daily average of 748.9 million
Shares of Commercial Credit and Fiance Plc, however, ended
5.90 percent weaker.
The Colombo stock index ended 0.17 percent at
6,337.82, edging up from its lowest close since Dec.2 hit on
Wednesday. The bourse gained 1.17 percent last week, recording
its first weekly gain in four weeks.
"It was a fairly dry year, but today's trade will give a bit
of confidence to the investors," said Kanishka Perera Head of
Research at Asia Securities.
"There could be a slight boost to the turnover levels in the
coming days and this shows that still there is investor
confidence in the market."
The deal, according to brokers, is a positive as it assures
investors of continuing foreign appetite towards Sri Lanka at a
time of worries over the proposed increases in various taxes and
fees affecting growth.
The government aims to boost its 2017 tax revenue by 27
percent to 1.82 trillion rupees year-on-year to meet a
commitment given to the International Monetary Fund in return
for a $1.5 billion loan in May.
Shares of conglomerate John Keells Holdings Plc
rose 2.58 percent while Hemas Holdings Plc rose 2.08
($1 = 148.5000 Sri Lankan rupees)
(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Vyas