Nov 5 (Reuters) - Sri Lankan stocks rose on Wednesday to hit a near-four-week high led by banks and helped by low interest rates and better earning expectations.
Sri Lanka's main stock index closed up 0.51 percent, or 37.57 points, at 7,358.46, its highest close since Oct. 9.
"Earnings are quite healthy. We expect buying interest to continue amid lower interest rate regime," said Dimantha Mathew, manager, research, at First Capital Equities (Pvt) Ltd.
Shares in top listed lender Commercial Bank of Ceylon Plc , which led the overall gain, rose 1.89 percent to 172.80 rupees, while Lanka IOC Plc rose 8.42 percent to 59.20 rupees.
Top conglomerate John Keells Holdings Plc, which reported a 29 percent year-on-year rise in September quarter net profit on Tuesday, rose 0.75 percent to 255 rupees.
Foreign investors were net buyers of 547.6 million rupees ($4.18 million) worth of shares, extending the net foreign inflow so far this year to 14.83 billion rupees, exchange data showed.
Wednesday's turnover was 2.1 billion rupees, well above this year's daily average of 1.39 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 = 130.8500 Sri Lankan rupee)
Sri Lanka's main stock index closed up 0.51 percent, or 37.57 points, at 7,358.46, its highest close since Oct. 9.
"Earnings are quite healthy. We expect buying interest to continue amid lower interest rate regime," said Dimantha Mathew, manager, research, at First Capital Equities (Pvt) Ltd.
Shares in top listed lender Commercial Bank of Ceylon Plc , which led the overall gain, rose 1.89 percent to 172.80 rupees, while Lanka IOC Plc rose 8.42 percent to 59.20 rupees.
Top conglomerate John Keells Holdings Plc, which reported a 29 percent year-on-year rise in September quarter net profit on Tuesday, rose 0.75 percent to 255 rupees.
Foreign investors were net buyers of 547.6 million rupees ($4.18 million) worth of shares, extending the net foreign inflow so far this year to 14.83 billion rupees, exchange data showed.
Wednesday's turnover was 2.1 billion rupees, well above this year's daily average of 1.39 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 = 130.8500 Sri Lankan rupee)
(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Sunil Nair)
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