Wednesday 26 August 2015

Sri Lanka shares recover from near 5-week closing low

Reuters: Sri Lankan shares edged up on Wednesday, rebounding from near five-week closing low hit in the previous session as investors bought in some select shares after two days of losses, but further gains were capped due to foreign selling in some stocks.

The main stock index was up 0.12 percent, or 8.52 points, at 7,240.10 on Wednesday, edging up from its lowest close since July 23 hit on Tuesday.

The main stock index lost 3.2 percent in the two sessions through Tuesday as foreign investors sold off risky assets on fears of a China - led global economic slowdown, and on selling by retail investors for month-end settlements.

Foreign investors were net sellers of 1.21 billion rupees worth of shares on Wednesday, extending the year to date net foreign outflow to 2.75 billion rupees.

Shares in John Keells Holdings Plc, which saw net foreign outflow of 6 million shares on Wednesday ended down 2.72 percent.

Turnover stood at 2.37 billion rupees, twice of this year's daily average of 1.16 billion rupees.

"The market is recovering with some selected buying," said Dimantha Mathew, a research manager at First Capital Equities (Pvt) Ltd.

"There was heavy foreign selling in Keells," Mathew added.

Shares in Dialog Axiata Plc rose 0.90 percent, while Sunshine Holdings Plc jumped 9 percent, helping the index to remain up. 

(Reporting by Ranga Sirilal; Editing by Anand Basu)

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