COLOMBO Jan 16 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
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