Shares edge up as investors pick up bank stocks

REUTERS:  Sri Lankan shares rose slightly yesterday from a more than one-week closing low hit in the previous session as investors bought banking shares, but concerns over rising interest rates weighed on sentiment.
Yields on treasury bills rose three to 10 basis points at a weekly auction on Tuesday. They have risen 44-73 basis points since October 7 to more than four-year highs, while the Central Bank has kept the key policy rates on hold. The Colombo stock index ended 0.04 percent firmer at 6,129.69, snapping a four-session losing streak and edging up from its lowest close since February 9 hit on Tuesday.
“Some crossings in blue chips boosted the turnover. Other than that, there was nothing and the market was very dull as investors are still on the sidelines,” said First Capital Equities (Pvt.) Ltd Head of Research Dimantha Mathew.

“Selling pressure is there, but there are no buyers.”
Shares in Lanka ORIX Leasing Company PLC rose 4.18 percent, while Nestle Lanka PLC, which posted a 42 percent rise in profit for the quarter ended December 31, climbed 2.02 percent.
Turnover stood at Rs.482.7 million, well below this year’s daily average of Rs.612.5 million.
Foreign investors net bought Rs.37.8 million worth of equities yesterday, but they have net sold Rs.215 million worth shares so far this year.