COLOMBO |
Jan
16 (Reuters) - Sri Lanka's stock
market rose more than 1 percent on Wednesday to hit a three-month high, helped
by foreign buying in large caps and falling interest rates ahead of the central
bank's January monetary policy rates announcement.
The
main share index closed up 1.08 percent, or 62.23 points, at 5,812.47, its
highest close since Oct. 9.
"Foreign
investors bought large caps," a stockbroker said on condition of
anonymity. "We see a positive outlook for the market at the moment due to
falling interest rates."
Ceylon
Tobacco Company PLC slimbed
2.80 percent firmer to 899.40 rupees while Chevron Lubricants Lanka PLC closed
3.79 percent up at 227.20 rupees.
The
central bank is expected to keep key policy rates steady on Thursday after last
month's surprise rate cut, a Reuters poll showed, but
analysts see further easing in monetary conditions during the first half.
On
Wednesday, T-bill yields eased for the seventh straight week. The 91-day yields
eased 13 basis points to a 10-month low of 9.75 percent.
Foreign
investors were net buyers of 112.1 million rupees ($886,200) worth of shares,
extending the net inflow to 482.6 million rupees so far this year. Last year,
Sri Lanka enjoyed a record 38.63 billion rupees foreign inflow.
The
day's turnover was 636.2 million rupees ($5.03 million).
The
rupee closed marginally weaker at 126.55/60 to the dollar from Tuesday's close
of 126.50/60, traders said. ($1 = 126.5000 Sri Lanka rupees) (Reporting by
Ranga Sirilal and Shihar Aneez; Editing by Ron Popeski)
