Sri Lanka’s main stock index traded slightly higher on Tuesday, a day after President Maithripala Sirisena appointed his interim Cabinet before a Parliament election, while investors awaited economic policies of the new administration.
The main stock index was 0.18 per cent or 13.59 points firmer at 7,580.29 at 0719 GMT. It hit its highest close since March 2011 on Friday.
“Still investors are waiting for economic policies of the new government and appointment of key officials,’’ a broker said.
Sirisena had announced an interim Cabinet on Monday and said he would carry out reforms to fight corruption in the 100 days to a parliamentary election.
Sirisena defeated former President Mahinda Rajapaksa, who contested for a third term, and ended a decade of rule that critics say had become increasingly authoritarian and marred by nepotism and corruption.
After the election, leader of the pro-business Opposition United National Party, Ranil Wickremesinghe, was appointed Prime Minister, boosting investor sentiment.
However, analysts see political uncertainty over Sirisena’s coalition because Rajapaksa’s coalition still has a majority in Parliament. However, many of its lawmakers have pledged to back Sirisena.
Sirisena’s coalition has promised a 100-day programme to restore democracy and the economy before he dissolves the Parliament for a general election after April 23.
The stock market turnover was 1 billion rupees ($7.59 million) at 0732 GMT, exchange data showed.
Rupee forwards
Rupee forwards traded slightly lower on importer dollar demand, but trading was dull ahead of holidays, dealers said.
The markets will be closed for a special holiday on Wednesday in view of Pope Francis’ visit to Sri Lanka, while they will be shut for a Hindu religious holiday on Thursday.
Actively traded four-day forwards were at 132.80/90 per dollar at 0737 GMT, compared with Monday’s close of 132.75/85, dealers said. ($1 = 131.8000 Sri Lankan rupees)