Shares gain on foreign buying

REUTERS: Sri Lankan shares rose yesterday 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 bourse.

The transaction was valued at Rs.10.59 billion ($71.31 million), according to a statement by Group Lease Holdings Pte Ltd.

Foreign investors bought a net Rs.11.7 billion ($78.79 million) worth of shares yesterday, reversing the yearto-date net foreign outflow to Rs.996.68 million worth of net investment in shares.

Turnover was Rs.12 billion, its highest since March 16, 2012, compared with this year’s daily average of Rs.748.9 million.

Shares of Commercial Credit and Finance 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 Rs.1.82 trillion yearon-year to meet a commitment given to the International Monetary Fund in return for a $1.5 billion loan in May.

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