Shares hit near four-month closing high as blue chips rally

REUTERS: Sri Lankan shares rose for an eighth straight session yesterday to their highest close in nearly four months led by blue chips such as Ceylon Tobacco Company Plc and John Keells Holdings Plc as continued foreign buying boosted sentiment.
The Colombo stock index ended 0.83 percent firmer at 6,250.04, its highest close since Dec. 19, 2016. The index rose 1.1 percent last week, posting its first weekly gain in six. The index climbed 4.60 percent in the last eight sessions through yesterday.
“Market bounced back from its oversold position on foreign buying, Thanks to the blue chip counters. But whether this trend will continue or not is the question,” said Yohan Samarakkody, head of research, SC Securities.
“Everything depends on how foreign buyers react in the future.”
Foreign investors net bought shares worth Rs. 256.6 million ($1.69 million) yesterday, raising the year-to-date net foreign inflow to Rs. 6.33 billion in equities. They have net bought Rs. 3.84 billion worth equities in the past 13 sessions.
Turnover stood at Rs.578.05 million, less than this year’s daily average of Rs.745.1 million. Shares of Ceylon Tobacco Company Plc gained 3.44 percent, conglomerate John Keells Holdings Plc climbed 1.37 percent, while Colombo Cold Stores Plc rose 0.84 percent.