Sri Lankan stocks gained for the fifth straight session on Monday and hovered near a three-year closing high as hopes for a policy rate cut this week and a further fall in interest rates boosted buying, stockbrokers said. Better earnings and continued foreign buying also have boosted the sentiment. The main stock index rose 0.36 percent, or 24.69 points to 6,942.92, its highest close since September 12, 2011. It has risen 17.4 percent so far this year.
"The confidence of local investors is gradually increasing as corporate earnings released so far are not too bad," said a stockbroker requesting not to be identified. Stockbrokers said investors had "no option" but to buy into stocks due to low interest rates as the market was expecting another rate cut on Friday. Turnover was 1.15 billion rupees ($8.84 million), compared with a daily average this year of about 1.11 billion rupees. Foreign investors bought a net 90.9 million rupees worth of shares on Monday, extending the year-to-date net foreign inflow to 12.12 billion rupees.
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