CSE market cap gains by Rs. 11 billion on foreign buying

Genesis, First State holding in JKH up to 7 and 8% respectively

Sustained foreign buying on select blue chips including the premier JKH has boosted the Colombo bourse for the second consecutive day. The market capitalization which was Rs. 781.3 billion on Friday had increased to Rs. 792.5 billion. Foreigners especially funds continued collecting JKH shares with stake of Genesis International and First State now over 7 and 8% respectively. Among sellers of JKH were Captain connected parties and a former Director of JKH. The top blue chip saw 3.2 million of its shares traded between a high of Rs. 129 and a low of Rs. 126.75 before closing at Rs. 128, up by 25 cents.

Renewed foreign interest on JKH was following its Deputy Chairman Ajit Gunesekera concluding meetings with investors in the UK as a follow up to a similar exercise carried out in the Far East few months ago. DFCC also saw foreign buying with around 1.5 million of its shares traded before closing at Rs. 122.50 up by Rs. 1.50. Foreign investors were net buyers yesterday to the tune of Rs. 430 million while on Monday it was over Rs. 90 million.

Largely on speculation, healthcare stocks continue to draw demand though with less premium yesterday.