Stock market edges up

Reuters: Shares closed slightly firmer on Monday, after posting a more than three-week closing low in the previous session, with beverage and telecom stocks driving the gains.

However, investor sentiment continued to remain low amid concerns about rising interest rates.

The Colombo stock index ended up 0.26% at 6,117.19, after posting its lowest close since 9 February on Friday. It shed 0.6% last week in its second straight weekly decline.

Foreign investors were net buyers of shares worth Rs. 384.7 million ($ 2.55 million) on Monday, extending the year-to-date net foreign inflow to Rs. 1.35 billion worth of equities.

Turnover was Rs. 711.9 million, more than this year’s daily average of Rs. 680.1 million.

“Some crossings boosted the turnover. The good sign is we are seeing continued foreign buying these days,” said Dimantha Mathew, head of research, First Capital Equities Ltd.

“Local investors are on the sidelines, mainly because of the high interest rates and economic uncertainty.”

Shares in Ceylon Cold Stores Plc jumped 6.12%, Lion brewery (Ceylon) Plc rose 6.27%, Ceylon Tobacco Company Plc gained 0.71%, and Sri Lanka Telecom Plc climbed 2.41%.

Yields on treasury bills have risen to a more than four-year high since October, while the Central Bank has kept key policy rates on hold.