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Hotel stocks rallied at the Colombo Stock Exchange, which closed up two percent for the week. Brokers say there is high investor interest in hospitality sector stocks due to increasing tourist arrivals and higher spending by visitors.
They say the sector is gearing for a bull run on the eve of the tourist season.
The sector index was up by almost 100 points or ten percent from last week to close at 1086 points.
The sector was boosted mainly by JKH upping its stake in Trans Asia Hotel.
Serendib and Associated Hotel stocks were also actively traded during the week.
Lanka Orix Securities in a report to be published soon forecast the sector index to grow by 40 percent this year as against a forecast growth of 25 percent for the market and 35 percent growth for liquid stocks tracked by the Milanka index.
Last year's hotel and travel sector stock prices jumped 60 percent, on the back of record tourist arrivals, compared a 30 percent growth in the all share index market.
Orix Securit