(Reuters) - Sri Lankan stocks steadied on Friday after two straight sessions of losses as profit-taking in blue chips offset gains in banking and palm oil shares, while foreign investors sold risky assets.
Stockbrokers expect the rising streak to continue due to lower interest rates and growth optimism.
The main stock index ended up 0.01 percent, or 0.73 points, at 7,233.71, hovering near a more than three-year high close hit on Tuesday.
"There will be a temporary correction with the index moving sideways, but the market will go up for the simple reason that there is no other avenue for people to invest," said an analyst asking not to be named.
"People might feel the market is a little overheated, but the bourse will still continue its run on lower interest rates and positive economic outlook."
Hatton National Bank Plc rose 1.33 percent to 183.40 rupees a share, while palm oil firm Good Hope Co Plc rose 12.43 percent to 1,800 rupees.
Shares of conglomerate John Keells Holdings Plc fell 0.91 percent to 251.20 rupees, while Ceylon Tobacco Co Plc ended down 0.62 percent at 1,152.8 rupees.
The day's turnover was 2.73 billion rupees ($20.9 million), well above this year's daily average of over 1.29 billion rupees.
Foreign investors were net sellers of 711.6 million rupees of shares on Friday, but have been net buyers of 10.65 billion rupees in stocks this year.
Stockbrokers expect the rising streak to continue due to lower interest rates and growth optimism.
The main stock index ended up 0.01 percent, or 0.73 points, at 7,233.71, hovering near a more than three-year high close hit on Tuesday.
"There will be a temporary correction with the index moving sideways, but the market will go up for the simple reason that there is no other avenue for people to invest," said an analyst asking not to be named.
"People might feel the market is a little overheated, but the bourse will still continue its run on lower interest rates and positive economic outlook."
Hatton National Bank Plc rose 1.33 percent to 183.40 rupees a share, while palm oil firm Good Hope Co Plc rose 12.43 percent to 1,800 rupees.
Shares of conglomerate John Keells Holdings Plc fell 0.91 percent to 251.20 rupees, while Ceylon Tobacco Co Plc ended down 0.62 percent at 1,152.8 rupees.
The day's turnover was 2.73 billion rupees ($20.9 million), well above this year's daily average of over 1.29 billion rupees.
Foreign investors were net sellers of 711.6 million rupees of shares on Friday, but have been net buyers of 10.65 billion rupees in stocks this year.
($1 = 130.3500 Sri Lankan rupee)
(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Prateek Chatterjee)
