Jan 27 (Reuters) - Sri Lankan shares hit a more than one-week closing high on Tuesday after the central bank kept key policy rates steady at record lows without any tightening measures amid foreign outflows, while investors waited for clarity from a supplementary budget later this week.
The main stock index ended higher 0.7 percent, or 51.57 points, at 7,367.65, its highest close since Jan. 20. It hit a one-month closing low on Friday.
Foreign investors sold a net 86.5 million rupees ($655,800) worth of shares on Tuesday, extending the net foreign outflow so far this month to 865.9 million rupees. They bought a net 22.07 billion rupees worth of stocks last year.
The central bank kept key policy rates steady on Tuesday, saying inflation is expected to ease further.
"Market is a little better with the policy rates announcement. People see some kind of direction," said a stockbroker asking not to be named.
Some analysts said investors are still waiting for clarity on the government's policies.
Turnover was 1.13 billion rupees, the highest since Jan. 22 but less than last year's daily average of 1.42 billion rupees, exchange data showed.
Finance Minister Ravi Karunanayake will present a supplementary budget on Thursday, aiming to fulfil election pledges by President Maithripala Sirisena, including pay hikes for the state sector and price reductions on essential goods.
Shares of top conglomerate John Keells Holdings Plc rose 2.98 percent, while Nestle Lanka Plc gained 1.98 percent.
The main stock index ended higher 0.7 percent, or 51.57 points, at 7,367.65, its highest close since Jan. 20. It hit a one-month closing low on Friday.
Foreign investors sold a net 86.5 million rupees ($655,800) worth of shares on Tuesday, extending the net foreign outflow so far this month to 865.9 million rupees. They bought a net 22.07 billion rupees worth of stocks last year.
The central bank kept key policy rates steady on Tuesday, saying inflation is expected to ease further.
"Market is a little better with the policy rates announcement. People see some kind of direction," said a stockbroker asking not to be named.
Some analysts said investors are still waiting for clarity on the government's policies.
Turnover was 1.13 billion rupees, the highest since Jan. 22 but less than last year's daily average of 1.42 billion rupees, exchange data showed.
Finance Minister Ravi Karunanayake will present a supplementary budget on Thursday, aiming to fulfil election pledges by President Maithripala Sirisena, including pay hikes for the state sector and price reductions on essential goods.
Shares of top conglomerate John Keells Holdings Plc rose 2.98 percent, while Nestle Lanka Plc gained 1.98 percent.
($1 = 131.9000 Sri Lankan rupees)
(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Subhranshu Sahu)
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