Jan 26 (Reuters) - Sri Lankan shares recovered on Monday from a one-month closing low hit in the previous session, but trading volume fell to a four-week low as investors awaited direction from the monetary policy and supplementary budget later this week.
The main stock index ended 0.54 percent or 39.45 points up, at 7,316.08, edging up from its lowest close since Dec. 24 hit on Friday.
The day's turnover was 338.2 million rupees, the lowest since Dec. 29 and less than a quarter of last year's daily average of 1.42 billion rupees, exchange data showed.
"People are waiting for the policies of the new government, the monetary policy and the budget," said Dimantha Mathew, research manager at First Capital Equities (Pvt) Ltd.
The central bank will unveil its first monetary policy under the new government on Tuesday and Finance Minister Ravi Karunanayake will announce a supplementary budget on Thursday.
President Maithripala Sirisena has pledged pay hikes for the state sector, reduction in the prices of 10 essential goods, and cuts in the cost of living through the budget.
Foreign investors were net buyers of 4.06 million rupees ($30,781) worth of shares on Monday. They bought a net 22.07 billion rupees worth of stocks last year.
The market has been on a downward trend, after hitting a near four-year high on Jan. 9, due to political concerns after the new government said it would hold parliamentary elections after April 23.
The reappointment of Thilak Karunaratne as the head of the market regulator also weighed on the index after the government said he would investigate suspect stock market deals. However, Karunaratne told Reuters he would not be "on a witch hunt".
Shares in top conglomerate John Keells Holdings Plc rose 2.29 percent, while Nestle Lanka Plc gained 3.59 percent, pushing the overall index up.
($1 = 131.9000 Sri Lankan rupees)
The main stock index ended 0.54 percent or 39.45 points up, at 7,316.08, edging up from its lowest close since Dec. 24 hit on Friday.
The day's turnover was 338.2 million rupees, the lowest since Dec. 29 and less than a quarter of last year's daily average of 1.42 billion rupees, exchange data showed.
"People are waiting for the policies of the new government, the monetary policy and the budget," said Dimantha Mathew, research manager at First Capital Equities (Pvt) Ltd.
The central bank will unveil its first monetary policy under the new government on Tuesday and Finance Minister Ravi Karunanayake will announce a supplementary budget on Thursday.
President Maithripala Sirisena has pledged pay hikes for the state sector, reduction in the prices of 10 essential goods, and cuts in the cost of living through the budget.
Foreign investors were net buyers of 4.06 million rupees ($30,781) worth of shares on Monday. They bought a net 22.07 billion rupees worth of stocks last year.
The market has been on a downward trend, after hitting a near four-year high on Jan. 9, due to political concerns after the new government said it would hold parliamentary elections after April 23.
The reappointment of Thilak Karunaratne as the head of the market regulator also weighed on the index after the government said he would investigate suspect stock market deals. However, Karunaratne told Reuters he would not be "on a witch hunt".
Shares in top conglomerate John Keells Holdings Plc rose 2.29 percent, while Nestle Lanka Plc gained 3.59 percent, pushing the overall index up.
($1 = 131.9000 Sri Lankan rupees)
(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Anupama Dwivedi)
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