Saturday, 22 March 2014 00:00
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REUTERS: Sri Lankan shares hit their highest close in more than one week after the Central Bank left its key policy rates unchanged at multi-year lows, but trading volume slumped as investors were in a wait-and-see mode ahead of an impending UN resolution on the country’s human rights record.
Before the market opened, the Central Bank kept its policy rates steady at multi-year lows, as expected, as it hopes that slowing private sector credit expansion will rebound and push up the country’s growth pace.
The main stock index ended up 0.39%, or 23.31 points, at 5,937.87, its highest close since 11 March.
The day’s turnover was Rs. 251.3 million ($ 1.92 million), well below a third of this year’s daily average of Rs. 882.4 million.
Foreign investors were net sellers of Rs. 3.2 million worth of shares on Friday, extending the net outflow so far this year to Rs. 4.11 billion, and clocked Rs. 22.88 billion in 2013.
Shares of Nestle Lanka PLC gained 2.15% to Rs. 1995.00.
Analysts said investor sentiment has been dented on concerns over the UN resolution, which could have an impact on the country’s economy. Many potential buyers in risky assets are staying on the sidelines awaiting clear direction.
Earlier this month, Sri Lanka questioned the independence of the human rights office of the United Nations after the United States asked it to investigate violations by the Sri Lankan Government related to the civil war.
A vote on the resolution is scheduled for the next week.
