Stocks at 23-month low; Rupee stronger

Thursday, 7 June 2012 09:07 - - {{hitsCtrl.values.hits}}

Uncertain rupee, interest rate outlook drag bourse
Stock market sees Rs. 48.8 m foreign inflow
Rupee firmer on state bank dlr sales-dealers
Treasury Bill yields drop

Reuters: Sri Lankan stocks fell on Wednesday in thin trade, hitting a 23-month low as the interest rate outlook weighed on the market.

The main index fell 10.85 points to 4,737.75, its lowest since July 19, 2010.

Short term T-bill yields edged down at a Wednesday auction, but the 364-day T-bill yield edged up, raising investor concerns over the interest rate outlook.

“Interest rates are a concern and we don’t see the buying support,” said a broker, who declined to be identified.

Foreign investors however were net buyers of 48.8 million rupees ($374,700) worth of shares on Wednesday, extending the net foreign inflow to 22.6 billion rupees this year. Turnover was 246.4 million rupees, well below the daily average of 979.8 million rupees this year.

The rupee strengthened to 130.00/35 against the dollar from Tuesday’s close of 130.50/60 as a state-owned bank sold dollars at 130.Sri Lanka’s central bank said last week it believed the rupee would stabilise at levels stronger than 125 to the dollar.