Shares end flat as investors await CB rate review

Wednesday, 22 March 2017 00:01 - - {{hitsCtrl.values.hits}}

Reuters: Shares were little changed on Tuesday in lacklustre trade, hovering near a one-year closing low hit last week, as investors stayed on the sidelines ahead of the Central Bank’s policy review.

The Colombo stock index ended flat at 6,041.59, near its lowest close since 16 March 2016 hit on Thursday.

Turnover stood at Rs. 283.3 million ($ 1.9 million), less than half of this year’s daily average of Rs. 665 million.

The index has lost 1.2% since 7 March, when the International Monetary Fund called for monetary policy tightening if credit growth or inflation did not abate.

The Central Bank’s second monetary policy review of the year is due on Friday.

“The market is closely watching for the monetary policy rate announcement and sovereign bonds,” said Jaliya Wijeratne, who heads First Capital Equities.

“Local investors are just waiting for some direction, but foreign investors are buying counters.”

Foreign investors net bought shares worth Rs. 160.8 million, raising the year-to-date net foreign inflow to Rs. 2.66 billion in equities.

Shares in Commercial Leasing and Finance Plc rose 8%, while Lanka ORIX Leasing Company Plc gained 2.3% and Dialog Axiata Plc rose 0.9%.