Bourse slips from 3-week high

Reuters - Sri Lankan stocks ended weaker on Wednesday, coming off a three-week high and ending a seven session rising trend on concern about rising interest rates and less attractive valuations, dealers said.

The Colombo Stock Exchange’s main index edged down 0.45%, or 24.92 points, to end at 5,574.96, slipping from its highest level since Oct. 19.

“The market is down on the high interest rates and also the valuations are not that attractive,” said a stockbroker who declined to be identified.

The yield on the 364-day T-bill gained 8 basis points to 12.73% at a weekly auction, rising for the fifth consecutive week, central bank data showed.

Foreigners, however, bought a net 25.3 million rupees ($193,900) worth of shares, extending the net foreign inflow this year to 35.1 billion rupees.

Turnover was 200 million rupees, less than a quarter of the year’s daily average of 902.9 million rupees.

The rupee closed firmer at 130.20/30 to the dollar compared with Monday’s close of 130.40/50 as banks sold dollars, dealers said. Both the stock and foreign exchange markets were closed on Tuesday for the Diwali holiday