Wednesday 7 January 2015

Sri Lankan stocks edge up to over 6-wk closing high before polls

Jan 7 (Reuters) - Sri Lankan stocks rose to a more than six-week closing high on Wednesday, as investors picked up beaten-down shares a day ahead of a tight presidential election.

The main stock index closed 0.25 percent, or 18.38 points, firmer at 7,438.52, its highest close since Nov. 20.

"The market took a cautious approach towards elections, though there won't be a major shift in policies whoever wins," said Reshan Kurukulasuriya, chief operating officer of Richard Pieris Securities (Pvt) Ltd.

President Mahinda Rajapaksa called early elections to be held on Jan. 8. Twenty-six lawmakers have quit his ruling United People's Freedom Alliance since the announcement, including former health minister Mithripala Sirisena, who is challenging Rajapaksa's bid for a third term. Two opposition legislators have joined the ruling party.

The gain in stocks was boosted by a 5.13 percent rise in Hemas Holdings Plc and a 0.78 percent gain in Sri Lanka Telecom Plc.

The day's turnover was 1.39 billion rupees ($10.6 million), slightly less than last year's daily average of 1.42 billion rupees, stock exchange data showed.

Foreign investors were net buyers of 81.3 million rupees worth of shares on Wednesday, but have been net sellers of 216.9 million so far this year, the data showed. They bought a net 22.07 billion rupees worth of stocks last year.

The index rose 23.4 percent in 2014, but has lost 3.5 percent since Nov. 19 when Rajapaksa announced the snap poll. 

($1 = 131.7500 Sri Lankan rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Prateek Chatterjee)

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