Sri Lankan shares rose for a fourth straight session on Tuesday, lifted by gains in financial stocks, as the crisis-hit country awaited the approval of a $2.9-billion loan.
The CSE All-Share index rose 2.1% to 9,642.94. The index had settled 1.2% higher on Friday; markets were closed on Monday for a holiday.
Sri Lanka’s central bank had on Friday raised its standing deposit facility and standing lending facility rates by a 100 basis points each and said it would relax its currency band to move towards a market-determined exchange rate.
Sri Lanka expects final approval from the International Monetary Fund (IMF) for the $2.9-billion loan in the third or fourth week of March, President Ranil Wickremesinghe said on Tuesday, adding that new support from China meant all funding requirements had been met.
Financial services company LOLC Finance and communication services company Dialog Axiata added the biggest boosts to the index, rising 6.7% and 9.9%, respectively.
Trading volume rose to 115 million shares from 93.6 million in the previous session.
The equity market’s turnover rose to 3.44 billion Sri Lankan rupees ($10.75 million), compared with 2.86 billion Sri Lankan rupees in the previous session, according to exchange data.
Foreign investors were net sellers in the equity market, offloading stocks worth 389.9 million Sri Lankan rupees, while domestic investors were net buyers, purchasing shares worth 3.23 billion Sri Lankan rupees, data showed.
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