Stock market closed for Christmas on a positive note making Wednesday's dip isolated though the streak of over Rs. 1 billion turnover ended yesterday.
Encouraged by the return of buying spirit, both indices gained yesterday with ASPI up 26 points and the
MPI higher by 33 points. The Colombo bourse has year to date given over 100% return to investors."Investors were taking positions before the election," Prashan Fernando, executive director at Acuity Stockbrokers, had told Reuters.
"Normally year-end trade is sluggish, but this time there is an unusual surge."
Conglomerate Bukit Darah jumped 6.19 percent firmer to 2,727.25 rupees, while market heavyweight John Keells Holdings rose 0.15 percent to 170.25 rupees.
Analysts said the foreign buying last week triggered the investor sentiment with high turnovers, which continued this week as well.
The bourse data showed net foreign buying last week had hit about 2.3 billion rupees, boosting sentiment.
Foreign trade so far this year till Thursday's close has hit a net outflow of 473.3 million rupees, dragged by significant foreign selling in the last two sessions.
The day's turnover was at 868 million rupees ($7.6 million), driven by local buying and double that of last year's daily market average of 464 million rupees. Until yesterday, the stock market has been reporting over Rs. 1 billion daily turnover.
According to Reuters, analysts said the investors were taking positions expecting good earnings and ahead of elections.
The presidential poll is scheduled for Jan. 26 and it will be followed by parliamentary election due by April.
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