Nov 13 (Reuters) - Sri Lankan stocks rose to hover around a 3-1/2-year high on Thursday as investors picked up construction and banking shares on hopes of growth in the sectors, while foreign buying pushed the turnover to a six-week high.
Analysts said low interest rates and better earnings expectations kept investor appetite for risky assets intact.
Sri Lanka's main stock index edged up 0.14 percent to 7,479.69, its highest closing level since May 19, 2011.
"There was lot of retail interest seen across the board after some time. We expect a psychological barrier around 7,500 levels specially on the big-cap shares," said Dimantha Mathew manager, research, at First Capital Equities (pvt) Ltd.
Thursday's turnover was 4.08 billion rupees, well above this year's daily average of 1.42 billion rupees with foreign investors buying a net 1.11 billion rupees ($8.48 million) worth of shares. The bourse has witnessed a foreign inflow of 17.86 billion rupees so far this year, exchange data showed.
Shares in Access Engineering Plc, which led the overall gain, rose 5.98 percent to 39 rupees while People's Leasing and Finance Plc rose 2.08 percent to 24.50 rupees.
Traders said hopes over a boost in vehicle leasing business for People's Leasing and Finance Plc and Access Engineering being awarded a multi-million dollar contract for a new highway helped boost their share prices.
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.
The country's central bank has 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.
($1 = 130.9000 Sri Lankan rupees)
Analysts said low interest rates and better earnings expectations kept investor appetite for risky assets intact.
Sri Lanka's main stock index edged up 0.14 percent to 7,479.69, its highest closing level since May 19, 2011.
"There was lot of retail interest seen across the board after some time. We expect a psychological barrier around 7,500 levels specially on the big-cap shares," said Dimantha Mathew manager, research, at First Capital Equities (pvt) Ltd.
Thursday's turnover was 4.08 billion rupees, well above this year's daily average of 1.42 billion rupees with foreign investors buying a net 1.11 billion rupees ($8.48 million) worth of shares. The bourse has witnessed a foreign inflow of 17.86 billion rupees so far this year, exchange data showed.
Shares in Access Engineering Plc, which led the overall gain, rose 5.98 percent to 39 rupees while People's Leasing and Finance Plc rose 2.08 percent to 24.50 rupees.
Traders said hopes over a boost in vehicle leasing business for People's Leasing and Finance Plc and Access Engineering being awarded a multi-million dollar contract for a new highway helped boost their share prices.
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.
The country's central bank has 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.
($1 = 130.9000 Sri Lankan rupees)
(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Sunil Nair)
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