CSE near one-month high on banks; rupee weaker

Reuters: Stocks rose for a third straight session on Monday to a near one-month high as investors picked up bank shares, but turnover was low as many investors stayed away because of rising interest rates.

The main index ended 0.27% higher at 5,704.53, its highest close since 22 February.



Analysts said many domestic investors stayed on the sidelines as yields on Treasury bills rose for the second week on Wednesday even though the Central Bank kept its key policy rates unchanged for a third straight month.

Shares in the biggest listed lender, Commercial Bank of Ceylon, rose 1.79% to Rs. 114, while Hatton National Bank PLC rose 2.42% to Rs. 160.80.

Turnover was Rs. 309.34 million ($ 2.45 million), well below this year’s daily average of Rs. 1.02 billion.

Foreign investors were net sellers of Rs. 5.9 million worth of shares. They have been net buyers of Rs. 3.76 billion worth of shares this year.

The rupee ended weaker at 126.30/35 to the dollar from Friday’s close of 126.10/20, due to importer dollar demand, dealers said.