Saturday, 7 June 2014 00:07
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REUTERS: Shares ended little changed on Friday, hovering near their lowest close in more than three weeks hit on 30 May, as buying by foreign investors was offset by a fall in large caps such as Ceylon Tobacco Company PLC.
Analysts said continued foreign buying and expectation that interest rates would come down further will boost market sentiment.
The main stock index ended 0.02%, or 1.02 points, weaker at 6,279.14. On 30 May, it had closed at its lowest level since 7 May.
The bourse saw a net foreign inflow for the seventh straight session. Foreign investors bought Rs. 297.2 million worth of shares on Friday, extending the year-to-date net foreign inflows to Rs. 4.18 billion.
Turnover was Rs. 835 million ($ 6.41 million), less than this year’s daily average of Rs. 1 billion. Analysts said the market expects a further fall in interest rates after Central Bank Governor Ajith Nivard Cabraal told Reuters on Friday that the bank is creating room to cut interest rates further.Cabraal signalled “a lot a space being created for some more dovish action”.
Stockbrokers expect the market to gain in the near future due to lower interest rates after the Central Bank kept key rates at multi-year lows in May for the fourth straight month, as expected.
Shares of Ceylon Tobacco Company PLC fell 1.95% to Rs. 1,029.50.
