Shares near 8-week high on political stability hopes, earnings

Sri Lankan shares rose to near eight-week high on Thursday, gaining for a second session as hopes of political stability after Aug. 17 parliamentary polls and better earnings lifted sentiment, brokers said.

At 0702 GMT, the main stock index was up 0.25 percent at 7,217.53, the highest level since June 1. Turnover stood at 867.2 million rupees ($6.49 million) in early trade on Thursday.

“Investors are buying because they are confident of getting a stable government after the elections,” Danushka Samarasinghe, research head at Softlogic Stockbrokers said. Samarasinghe expects Sri Lankan companies to post strong results this quarter.

Analysts also said hopes over political stability after Aug. 17 parliament election also helped sentiment. They expect next month’s election to help strengthen President Maithripala Sirisena’s political position.

The Sri Lankan rupee was steady in dull trade as a state-owned bank maintained its dollar-selling rate at 133.70,, dealers said. “The state bank is selling at 133.70, there is importer demand and no sellers,” a currency dealer said. (Reuters)