Bourse edges up in thin trade; rates direction awaited
Saturday, 21 March 2015 00:46
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Reuters: Shares ended slightly firmer on Friday, led by large caps, but volumes remained thin as investors awaited cues on interest rates, stockbrokers said
The main stock index ended 0.11%, or 7.88 points, up at 7,054.58, further moving away from its lowest close since 2 February hit on Wednesday. It had lost 3.74% in the last 13 sessions through Wednesday.
Analysts expect the index to gain on hope that interest rates might gradually come down after yields in T-bills fell between 31 basis points and 44 at a weekly auction on Wednesday. The yields spiked between 112 basis points and 124 in the two previous weekly auctions.
“There was no reaction for the declining interest rates. Investors are still not confident enough and they are not selling or buying, but looking for direction,” said Dimantha Mathew, Research Manager at First Capital Equities Ltd.
The day’s turnover stood at Rs. 370.4 million ($2.79 million), well below this year’s daily average of Rs. 1.24 billion.
Foreign investors were net buyers of Rs. 63.1 million worth of shares, extending the year-to-date foreign inflow to Rs. 3.36 billion.
The Central Bank on Wednesday said the low interest rate environment is expected to continue benefiting from lower inflation while keeping the policy rates steady.
Shares in Ceylon Tobacco Co Plc rose 3.83%, while Commercial Leasing and Finance Co Plc gained 4.88%.
Infrastructure firm Access Engineering fell 10% a day after Sri Lanka’s new Government cancelled an $ 85 million airport runway project awarded by the previous Government.
