(Reuters) - Sri Lankan shares ended slightly firmer on Friday, led by large caps, but volumes remained thin as investors awaited cues on interest rates, stockbrokers said
The main stock index ended 0.11 percent, or 7.88 points, up at 7,054.58, further moving away from its lowest close since Feb. 2 hit on Wednesday. It had lost 3.74 percent in the last 13 sessions through Wednesday.
Analysts expect the index to gain on hope that interest rates might gradually come down after yields in t-bills fell between 31 basis points and 44 at a weekly auction on Wednesday. The yields spiked between 112 basis points and 124 in the two previous weekly auctions.
"There was no reaction for the declining interest rates. Investors are still not confident enough and they are not selling or buying, but looking for direction," said Dimantha Mathew, research manager at First Capital Equities (Pvt) Ltd.
The day's turnover stood at 370.4 million rupees ($2.79 million), well below this year's daily average of 1.24 billion rupees.
Foreign investors were net buyers of 63.1 million rupees worth of shares, extending the year-to-date foreign inflow to 3.36 billion rupees.
The central bank on Wednesday said the low interest rate environment is expected to continue benefiting from lower inflation while keeping the policy rates steady.
Shares in Ceylon Tobacco Co Plc rose 3.83 percent, while Commercial Leasing and Finance Co Plc gained 4.88 percent.
Infrastructure firm Access Engineering fell 10 percent a day after Sri Lanka's new government cancelled an $85 million airport runway project awarded by the previous government.
The main stock index ended 0.11 percent, or 7.88 points, up at 7,054.58, further moving away from its lowest close since Feb. 2 hit on Wednesday. It had lost 3.74 percent in the last 13 sessions through Wednesday.
Analysts expect the index to gain on hope that interest rates might gradually come down after yields in t-bills fell between 31 basis points and 44 at a weekly auction on Wednesday. The yields spiked between 112 basis points and 124 in the two previous weekly auctions.
"There was no reaction for the declining interest rates. Investors are still not confident enough and they are not selling or buying, but looking for direction," said Dimantha Mathew, research manager at First Capital Equities (Pvt) Ltd.
The day's turnover stood at 370.4 million rupees ($2.79 million), well below this year's daily average of 1.24 billion rupees.
Foreign investors were net buyers of 63.1 million rupees worth of shares, extending the year-to-date foreign inflow to 3.36 billion rupees.
The central bank on Wednesday said the low interest rate environment is expected to continue benefiting from lower inflation while keeping the policy rates steady.
Shares in Ceylon Tobacco Co Plc rose 3.83 percent, while Commercial Leasing and Finance Co Plc gained 4.88 percent.
Infrastructure firm Access Engineering fell 10 percent a day after Sri Lanka's new government cancelled an $85 million airport runway project awarded by the previous government.
($1 = 132.9000 Sri Lankan rupees)
(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Anand Basu)
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