Stock market edges up

Colombo (Reuters): Shares ended slightly stronger on Tuesday after posting their lowest close in more than two weeks in the previous session, although concerns about rising interest rates continued to hurt investor sentiment.

Turnover rose to a 12-week high at Rs. 2.41 billion ($ 15.93 million), around four times this year’s daily average of Rs. 670.8 million, boosted by a stake sale in Kotmale Holdings Plc. The Colombo stock index ended up 0.2% at 6,134.28, after closing at its lowest since 9 February on Monday.

“Crossings pushed the turnover,” said Dimantha Mathew, head of research at First Capital Equities Ltd.

“Investors are still worried about economic conditions and rising interest rates.”

Kotmale shares closed unchanged, while conglomerate John Keells Holdings Plc jumped 1.64% and Ceylon Cold Stores Plc rose 4.28%.

Foreign investors, who have been net buyers of Rs. 487.7 million worth of equities so far this year, net sold Rs. 93.02 million of shares on Tuesday.

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.