Oct 31 (Reuters) - Sri Lankan stocks rose for a seventh straight session Friday to hit a three-week high, led by banks and foreign investors as corporate earnings and lower rates helped lift sentiment.
Sri Lanka's main stock index ended up 0.44 percent, or 32.40 points, at 7,326.81, its highest close since Oct. 9.
"There was a lot of buying interest. Investors are expecting good earnings and heavy trading was seen mostly in blue-chips," said Dimantha Mathew, manager, research at First Capital Equities (pvt) Ltd.
"A lot of foreign interest was seen in banking shares, expecting credit growth to pick up in a low interest rate regime."
Net foreign inflows on Friday touched 1.68 billion rupees ($12.85 million), its highest since May 9. The bourse has seen net foreign inflows of 14.77 billion rupees so far this year, exchange data showed.
The day's turnover was 3.81 billion rupees, its highest since Oct. 3 and well above this year's daily average of 1.36 billion rupees.
Top-listed lender Commercial Bank of Ceylon Plc led the day's gains with a rise of 2.35 percent to 165.8 rupees and DFCC Bank Plc added 3.34 percent to 228.70 rupees.
Analysts expect trading to be choppy in the near-term due to the revised presidential poll schedule in January and a possible bottoming out of interest rates.
Sri Lanka's central bank on Sept. 20 kept key policy rates steady for a ninth straight month, saying private sector credit growth was picking up and long-term lending rates were adjusting downwards.
President Mahinda Rajapaksa will seek an early re-election in January, seeking to pre-empt any decline in support after nearly nine years in power.
($1 = 130.7500 Sri Lankan rupee)
Sri Lanka's main stock index ended up 0.44 percent, or 32.40 points, at 7,326.81, its highest close since Oct. 9.
"There was a lot of buying interest. Investors are expecting good earnings and heavy trading was seen mostly in blue-chips," said Dimantha Mathew, manager, research at First Capital Equities (pvt) Ltd.
"A lot of foreign interest was seen in banking shares, expecting credit growth to pick up in a low interest rate regime."
Net foreign inflows on Friday touched 1.68 billion rupees ($12.85 million), its highest since May 9. The bourse has seen net foreign inflows of 14.77 billion rupees so far this year, exchange data showed.
The day's turnover was 3.81 billion rupees, its highest since Oct. 3 and well above this year's daily average of 1.36 billion rupees.
Top-listed lender Commercial Bank of Ceylon Plc led the day's gains with a rise of 2.35 percent to 165.8 rupees and DFCC Bank Plc added 3.34 percent to 228.70 rupees.
Analysts expect trading to be choppy in the near-term due to the revised presidential poll schedule in January and a possible bottoming out of interest rates.
Sri Lanka's central bank on Sept. 20 kept key policy rates steady for a ninth straight month, saying private sector credit growth was picking up and long-term lending rates were adjusting downwards.
President Mahinda Rajapaksa will seek an early re-election in January, seeking to pre-empt any decline in support after nearly nine years in power.
($1 = 130.7500 Sri Lankan rupee)
(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Biju Dwarakanath)
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