Stocks fall on margin selling; Rupee rises

Wednesday, 17 October 2012 00:23 - - {{hitsCtrl.values.hits}}

Reuters: Stocks slipped for a second day on Tuesday to a five-week low on margin calls as the rupee ended firmer.

The Colombo Stock Exchange’s main index fell 0.81%, or 45.67 points, to 5,608.13, its lowest level since 11 September.

“There were margin calls by brokers and retail investors had to sell their shares to settle credit for their earlier transactions,” a stockbroker said on condition of anonymity. “Lack of positive news to boost sentiment is also a reason the market fell.”

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The market saw a net foreign inflow of Rs. 46 million, extending the net offshore inflow to the tune of Rs. 33.29 billion so far this year.

Turnover was Rs. 515.4 million ($ 4.01 million), around half of this year’s daily average of Rs. 949 million.

The rupee closed firmer at 128.75/80 to the dollar compared with Monday’s close of 128.90/129.10 on dollar sales by banks, dealers said.