CSE hits near 6-week closing high; turnover slumps to 4-year low

Reuters: Shares rose slightly on Monday and posted their highest close in nearly six weeks in light trade, as many market participants were on extended holidays after the Sinhala-Tamil New Year festival over the weekend, brokers said.

Turnover was Rs. 101.9 million ($ 653,833.81), the lowest since 17 March 2014, and less than a 10th of this year’s daily average of Rs. 1.16 billion.

“Many people are on vacation and we expect the same to continue until the end of this week,” said Acuity Stockbrokers CEO Prashan Fernando.

The Colombo stock index rose for a fourth straight session and ended 0.19% higher at 6,496.44, its highest close since 1 February. The index gained 0.44% last week.

Brokers said the market was awaiting some political stability after President Maithripala Sirisena suspended the parliament until 8 May.

The president will reshuffle the cabinet soon, cabinet spokesman Rajitha Senaratne said on Wednesday, after some ministers defected and voted for the no confidence motion against Prime Minister Ranil Wickremesinghe.

Foreign investors sold shares worth a net Rs. 8.1 million on Monday, extending the net foreign outflow from equities to Rs. 1.36 billion.

Shares of Distilleries Company of Sri Lanka Plc rose 6.2%, while fuel retailer Lanka IOC closed 5.2% firmer.

The Central Bank unexpectedly cut its key lending rate by 25 basis points on Wednesday, as policy makers sought to revitalise an economy growing at its weakest pace in 16 years and facing heightened political uncertainty.