Bourse sinks to 3-week low; ASI’s negative return back to 20%

Friday, 10 August 2012 01:07 - - {{hitsCtrl.values.hits}}

Reuters: Stocks fell for a fifth straight session on Thursday, hit by concerns about rising interest rates and a delay in promised Government measures to boost the market, analysts said.

The Colombo Stock Exchange’s main index lost 0.78%, or 37.99 points, to end at 4,851.88, its lowest since 18 July.

“Due to high interest rates, the local investor interest was not seen. But there had been foreign interest on some select blue chip counters,” a stockbroker said on condition of anonymity.

Even though the Central Bank has kept policy rates steady for the past four months, it has allowed yields on treasury bills to increase 132-186 basis points.

This has made fixed-income instruments more attractive compared to equities.

Analysts said that the failure to implement measures promised at a meeting with Treasury Secretary P.B. Jayasundera, including more retail credit, was hurting trade in shares.

The Bourse has fallen 20.13% in 2012.

The day’s turnover was Rs. 773.6 million ($ 5.87 million), below this year’s daily average of Rs. 879.7 million.

Foreign investors were net buyers for a 14th straight session, picking up a net Rs. 85.9 million worth of shares, extending the net foreign inflow this year to Rs. 26.14 billion.

The rupee edged down at 132/20 per dollar from Wednesday’s close of 131.95/132 on importer demand for dollars, dealers said.

Discover Kapruka, the leading online shopping platform in Sri Lanka, where you can conveniently send Gifts and Flowers to your loved ones for any event including Valentine ’s Day. Explore a wide range of popular Shopping Categories on Kapruka, including Toys, Groceries, Electronics, Birthday Cakes, Fruits, Chocolates, Flower Bouquets, Clothing, Watches, Lingerie, Gift Sets and Jewellery. Also if you’re interested in selling with Kapruka, Partner Central by Kapruka is the best solution to start with. Moreover, through Kapruka Global Shop, you can also enjoy the convenience of purchasing products from renowned platforms like Amazon and eBay and have them delivered to Sri Lanka.