Negative start for Bourse in fresh week

Tuesday, 12 March 2013 01:39 - - {{hitsCtrl.values.hits}}

Reuters: Shares snapped a three-session gaining streak on Monday, as retail investors took profits in thin volumes while many investors were cautious after the Central Bank held rates steady, brokers said.

The main share index fell 0.25%, or 14.08 points, to 5,677.31, from its highest since 22 February.

“Retailers are getting out. We will see local investors getting out, attracted by the high interest rates. But foreigners keep accumulating fundamentally sound stocks,” said a stockbroker on condition of anonymity.

The Central Bank last Friday left policy rates unchanged for a third straight month, saying inflation was expected to ease and reach more favourable levels by the end of the year. That in turn comes after yields on Treasury bills reversed their falling trend for the first time in 13 weeks.

The day’s turnover was Rs. 557.01 million ($ 4.40 million), around half of this year’s daily average of Rs. 1.07 billion.

Foreign investors were net buyers of Rs. 45 million, extending year-to-date foreign inflows to Rs. 2.78 billion.

The rupee ended firmer at a near one-month closing high of 126.45/55 to the dollar compared with Friday’s finish of 126.50/60.