Bourse closes steady ahead of CB policy meeting

Reuters: Shares ended steady on Tuesday as investors awaited directions from a key central bank policy meeting later in the day.

The Central Bank is expected to keep its key interest rates steady at the meeting after raising them by 50 basis points last month, a Reuters poll showed, amid signs of easing inflation and slower private sector credit growth.

The benchmark Colombo stock index ended 0.02% up at 6,541.80, after posting its lowest close since 12 August on Monday.

The market moved sideways as investors waited for directions from the policy meeting, said Dimantha Mathew, head of research at First Capital Equities Ltd.

Turnover stood at Rs. 727.3 million, just below this year’s daily average of Rs. 753.4 million.

Foreign investors sold a net Rs. 225.8 million ($ 1.55 million) worth of shares, extending the year-to-date net foreign outflow to Rs. 3.94 billion worth of equities.

Lanka ORIX Leasing Company Plc rose 2.5%, Overseas Realty Ceylon Plc gained 4%, while top conglomerate John Keells Holdings Plc fell 0.3%.