Nov 12 (Reuters) - Sri Lankan stocks hit a 3-1/2-year high on Wednesday as investors picked up banking and construction shares on hopes of growth in the sectors, while continued foreign buying, low interest rates and better earnings expectations kept investor appetite for risky assets intact.
Sri Lanka's main stock index ended up 0.76 percent at 7,469.41, its highest closing level since May 20, 2011.
Shares in Access Engineering Plc, which led the overall gain, rose 6.67 percent to 36.8 rupees while People's Leasing and Finance Plc rose 5.73 percent to 24 rupees.
Traders said expectations over a boost in vehicle leasing business for People's Leasing and Finance Plc after the 2015 budget announcement last month reduced vehicle taxes and Access Engineering being awarded a multi-million dollar contract for a new highway helped boost their share prices.
Foreign investors bought a net 187.4 million rupees ($1.43 million) worth of shares, extending the net foreign inflow so far this year to 16.75 billion rupees, exchange data showed.
Wednesday's turnover was 2.68 billion rupees, well above this year's daily average of 1.40 billion 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.
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.
Sri Lanka's main stock index ended up 0.76 percent at 7,469.41, its highest closing level since May 20, 2011.
Shares in Access Engineering Plc, which led the overall gain, rose 6.67 percent to 36.8 rupees while People's Leasing and Finance Plc rose 5.73 percent to 24 rupees.
Traders said expectations over a boost in vehicle leasing business for People's Leasing and Finance Plc after the 2015 budget announcement last month reduced vehicle taxes and Access Engineering being awarded a multi-million dollar contract for a new highway helped boost their share prices.
Foreign investors bought a net 187.4 million rupees ($1.43 million) worth of shares, extending the net foreign inflow so far this year to 16.75 billion rupees, exchange data showed.
Wednesday's turnover was 2.68 billion rupees, well above this year's daily average of 1.40 billion 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.
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 rupee)
(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Sunil Nair)
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