Shares pull away from 11-week closing low

Reuters: Shares on Monday recovered from their lowest close in 11 weeks in thin trade ahead of the Sinhala-Tamil New Year this week, brokers said.

The Colombo stock index ended 0.14% higher at 6,439.83, recovering from its lowest close since 23 January hit in the previous session.

The turnover stood at Rs. 499.1 million ($ 3.21 million), less than half of this year’s daily average of Rs. 1.18 billion.

Market sentiment has improved after Prime Minister Ranil Wickremesinghe survived a no-confidence motion last week, dealers said.

“But still, the market is waiting for some more clarity in the political front. The holidays are also weighing on the trading,” said Acuity Stockbrokers CEO Prashan Fernando.

Top listed lender Commercial Bank of Ceylon gained 1.1%, Capital Trust closed 3.7% up, while John Keells Holdings edged up 0.1%.

Foreign investors sold shares worth net Rs. 43.4 million on Tuesday, extending the net foreign outflow to Rs. 831.7 million from equities.

Dealers expect the stock market to be tepid this week ahead of the Sinhala-Tamil New Year on 14 April.

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.

The index fell 0.33% last week and dropped 1.14% in March.