Tuesday, 20 May 2014 00:00
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Reuters: Stocks edged up on Monday to their highest close in more than 11 months ahead of the Central Bank’s monetary policy announcement, led by telecoms and financials, while foreign buying boosted sentiment.
The main stock index edged up 0.06%, or 4.05 points, to 6,319.24, its highest close since 10 June last year.
The Central Bank will release its monetary policy rates at 0200 GMT on Tuesday. The market broadly expects rates to be left steady at their current multi-year lows.
The exchange witnessed net foreign inflows of Rs. 178.3 million ($ 1.4 million) on Monday, extending year-to-date net foreign inflows to 859.8 million.
Shares of top mobile phone operator Dialog Axiata ended up 2.1% to Rs. 9.70, while Ceylinco Insurance Plc and NDB Capital Holdings Plc gained 6.2% each.
The market has been on a rising trend since mid-March as many investors were compelled to return to the stock market because low interest rates have made fixed-income assets less attractive, stockbrokers said.
The index has risen 1.5% in the last seven sessions.
But analysts have raised concerns over sluggish economic growth because of lower credit growth and consumer spending.
Despite a multi-year low interest rate regime, data showed private sector credit grew 4.4% in February from a year earlier, the slowest expansion since May 2010, while imports in February fell 6.2% on the year.
On Monday, Central Bank Governor Ajith Nivard Cabraal said Sri Lanka’s private sector credit growth would pick up to around 15% by the end of this year and continue to improve through 2016.
