Reuters: Sri Lankan shares rose for a third straight session on Monday to end at their highest in more than a week led by large-caps, but trading volume slumped to a more-than-one-month low.
The main stock index ended 0.36 percent higher at 6,363.18, the highest close since Jan. 22.
The index has fallen 7.7 percent so far this year as foreign investors, unnerved by global concerns over China's economy, cut their exposure.
"Market is moving up slowly in low volumes. I think market can move up a bit with the earnings," said Dimantha Mathew, research manager at First Capital Equities (Pvt) Ltd.
Turnover was 273.3 million rupees, the lowest since Dec. 30, and well below this year's daily average of 724.5 million rupees.
The 14-day relative strength index (RSI) returned to the neutral zone from oversold territory after three successive sessions of gains, Thomson Reuters data showed.
Foreign investors sold a net 27.9 million rupees ($193,817) worth of shares on Monday, extending the year-to-date net foreign outflow to 2.77 billion rupees worth of equities.
The central bank rejected all bids at an auction on Wednesday, signalling it would not tolerate much increase in yields after the yield on the 364-day t-bill jumped 32 basis points to a more-than-two-year high of 7.80 percent last week.
The move could help investors return to the market, analysts said.
Shares of market heavyweight John Keells Holdings Plc rose 2.13 percent and biggest listed lender Commercial Bank Ceylon Plc gained 2.28 percent, while Hemas Holdings Plc advanced 2.13 percent.
The main stock index ended 0.36 percent higher at 6,363.18, the highest close since Jan. 22.
The index has fallen 7.7 percent so far this year as foreign investors, unnerved by global concerns over China's economy, cut their exposure.
"Market is moving up slowly in low volumes. I think market can move up a bit with the earnings," said Dimantha Mathew, research manager at First Capital Equities (Pvt) Ltd.
Turnover was 273.3 million rupees, the lowest since Dec. 30, and well below this year's daily average of 724.5 million rupees.
The 14-day relative strength index (RSI) returned to the neutral zone from oversold territory after three successive sessions of gains, Thomson Reuters data showed.
Foreign investors sold a net 27.9 million rupees ($193,817) worth of shares on Monday, extending the year-to-date net foreign outflow to 2.77 billion rupees worth of equities.
The central bank rejected all bids at an auction on Wednesday, signalling it would not tolerate much increase in yields after the yield on the 364-day t-bill jumped 32 basis points to a more-than-two-year high of 7.80 percent last week.
The move could help investors return to the market, analysts said.
Shares of market heavyweight John Keells Holdings Plc rose 2.13 percent and biggest listed lender Commercial Bank Ceylon Plc gained 2.28 percent, while Hemas Holdings Plc advanced 2.13 percent.
($1 = 143.9500 Sri Lankan rupees)
(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Sunil Nair)
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