Bourse gains to 3-week closing high

Reuters: Shares touched a near three-week closing high on Wednesday as investors waited for clues from the Central Bank’s monetary policy review later in the week, with trading muted by the holidays after Christmas.

Sri Lanka’s Central Bank is expected to keep its key interest rates unchanged this week, a Reuters poll showed, as policymakers focus on supporting the slowing South Asian economy while remaining vigilant to still high inflationary pressures.

The Colombo Stock Index ended 0.14% firmer at 6,359.06, its highest since 8 December.

“Trading blue chip counters moved up slightly helping the index to end positive but the market is very dull as most of the brokers and investors are on holiday,” said Dimantha Mathew, head of research at First Capital Holdings.

Shares in Peoples Leasing Plc rose 0.6%, while Overseas Realty Plc ended 2.9% higher and Hemas Holdings Plc gained 0.8%.

Turnover stood at Rs. 263.3 million ($ 1.73 million), just above a quarter of this year’s daily average of Rs. 920.5 million.

Foreign investors sold Rs. 130.1 million net worth of shares on Wednesday, but they have bought Rs. 18.2 billion net worth equities so far this year.