Reuters: Sri Lankan shares ended little changed on Wednesday ahead of the central bank's policy rate decision on Friday.
The main stock index closed near its more than two-month closing low hit on Monday, down 0.05 percent at 7,114.83.
The central bank's monetary policy rate announcement is scheduled on Friday at 1230 GMT.
"There was no real investor interest in the market," said Dimantha Mathew, a research manager at First Capital Equities (Pvt) Ltd, adding the market moved sideways as there was no clear direction.
The weak rupee curbed investor risk appetite and rising market interest rates also hit sentiment, with t-bill yields at their highest level in more than five months at the last auction.
The rupee ended marginally higher due to inward remittances ahead of the Hajj, though importer demand for the greenback limited gains, dealers said. It has declined 4.4 percent since the central bank effectively floated the currency on Sept. 4.
Turnover was 747.6 million rupees ($5.31 million), compared with the daily average of 1.11 billion rupees. The turnover has been roughly half of this year's daily average since Aug. 31, stock exchange data showed.
Analysts said investors were waiting to see how the government would bridge the budget deficit and where the revenue would come from, in its November budget.
The IMF last week said the fiscal deficit is likely to range between 5.5 percent and 6 percent in 2015, much higher than an official target of 4.4 percent due to falling government revenues.
Foreign investors were net buyers of 155.7 million rupees worth of shares on Wednesday, but they have been net sellers of 2.8 billion rupees so far this year.
Shares of Nestle Lanka Plc fell 1.35 percent and John Keells Holdings Plc dropped 0.74 percent.
Both stock and currency markets will be closed on Thursday for the Hajj festival holiday. Normal trading will resume on Friday.
The main stock index closed near its more than two-month closing low hit on Monday, down 0.05 percent at 7,114.83.
The central bank's monetary policy rate announcement is scheduled on Friday at 1230 GMT.
"There was no real investor interest in the market," said Dimantha Mathew, a research manager at First Capital Equities (Pvt) Ltd, adding the market moved sideways as there was no clear direction.
The weak rupee curbed investor risk appetite and rising market interest rates also hit sentiment, with t-bill yields at their highest level in more than five months at the last auction.
The rupee ended marginally higher due to inward remittances ahead of the Hajj, though importer demand for the greenback limited gains, dealers said. It has declined 4.4 percent since the central bank effectively floated the currency on Sept. 4.
Turnover was 747.6 million rupees ($5.31 million), compared with the daily average of 1.11 billion rupees. The turnover has been roughly half of this year's daily average since Aug. 31, stock exchange data showed.
Analysts said investors were waiting to see how the government would bridge the budget deficit and where the revenue would come from, in its November budget.
The IMF last week said the fiscal deficit is likely to range between 5.5 percent and 6 percent in 2015, much higher than an official target of 4.4 percent due to falling government revenues.
Foreign investors were net buyers of 155.7 million rupees worth of shares on Wednesday, but they have been net sellers of 2.8 billion rupees so far this year.
Shares of Nestle Lanka Plc fell 1.35 percent and John Keells Holdings Plc dropped 0.74 percent.
Both stock and currency markets will be closed on Thursday for the Hajj festival holiday. Normal trading will resume on Friday.
($1 = 140.9000 Sri Lankan rupees)
(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Subhranshu Sahu)
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