Bourse edges up from 1-week low as investors buy blue chips

Reuters - Sri Lankan shares rose on Tuesday for the first time in four sessions, rebounding from a one-week closing low, as investors picked up banking and beverage stocks after the central bank held the policy rates steady.

The Sri Lankan central bank on Tuesday held its key rates steady, saying past steps were keeping inflation and credit growth under control, as policymakers focus on supporting an economy hit by extreme weather.

The Colombo stock index ended 0.12% higher at 6,419.61, edging up from its lowest close since Sept. 18 hit on Monday.

Shares of People Leasing Plc rose 2.9%, while conglomerate John Keells Holdings Plc ended 0.4% firmer, and biggest listed lender Commercial Bank of Ceylon Plc ended 0.7% up.

“It was a bit of a slow day with some foreign outflow,” said Dimantha Mathew, head of research at First Capital Holdings.

“High local interest in plantation sector and some block deals in blue chips were seen as a positive sign. Foreigners are inactive and global funds are shifting towards U.S. expecting a possible fed rate hike in December.”

Turnover stood at Rs. 532.3 million ($3.48 million), compared with this year’s daily average of about Rs. 917 million.

Foreign investors who bought a net Rs. 17.6 billion worth of equities so far this year were net sellers for the second straight session. They sold Rs. 54.2 million worth of shares on Tuesday.