COLOMBO, June 6 Sri Lankan shares ended little
changed on Friday, hovering near their lowest close in more than
three weeks hit on May 30, as buying by foreign investors was
offset by a fall in large caps such as Ceylon Tobacco Company
Analysts said continued foreign buying and expectation that
interest rates would come down further will boost market
The main stock index ended 0.02 percent, or 1.02
points, weaker at 6,279.14. On May 30, it had closed at its
lowest level since May 7.
The bourse saw a net foreign inflow for the seventh straight
session. Foreign investors bought 297.2 million rupees worth of
shares on Friday, extending the year-to-date net foreign inflows
to 4.18 billion rupees.
Turnover was 835 million rupees ($6.41 million), less than
this year's daily average of 1 billion rupees.
Analysts said the market expects a further fall in interest
rates after central bank governor Ajith Nivard Cabraal told
Reuters on Friday that the central bank is creating room to cut
interest rates further.
Cabraal signalled "a lot a space being created for some more
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,
Shares of Ceylon Tobacco Company PLC fell 1.95
percent to 1,029.50 rupees.
($1 = 130.3300 Sri Lankan Rupees)
(Reporting by Ranga Sirilal; Editing by Subhranshu Sahu)