COLOMBO May 16 Sri Lankan shares hit a one-year
closing high on Tuesday 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 on Tuesday 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 1.17 billion rupees ($7.67 million), more
than this year's daily average of 889.8 million Sri Lankan
rupees ($5.83 million).
"Today the foreigners got active and with that we have seen
retail investor's also returning," said Dimantha Mathew, head of
research, First Capital Holdings PLC.
Foreign investors net bought shares worth 281.05 million
rupees, extending the year-to-date net foreign inflows to 17.08
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 IMF statement on the disbursement of
the third tranche of a $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.
($1 = 152.6000 Sri Lankan rupees)
(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Vyas