Stock market gains from 3-month low

Reuters: The stock market edged up on Monday from a three-month low as investors picked up select battered large cap shares, but the volume of trade was down sharply on a suspected insider deal and uncertainties over the rupee and interest rates.

The Bourse has fallen 6.34 per cent over the last nine sessions through Friday as investors sold their stakes over worries about a defaulted share deal on The Finance Company, which is now under a regulatory investigation.

The main share index on Monday edged up 0.15%, or 7.75 points, to 5,116.31.

Top mobile phone operator Dialog Axiata rose 3.85% after falling 5.4 per cent on Friday when it posted a Rs. 530.9 m loss for the March quarter. Oil palm shares and diversified holdings also helped the overall market gain.

The daily turnover was Rs. 286.4 million, the lowest amount since 23 April and well below this year’s daily average of Rs. 1.1 billion.

But the index was still in the over sold region on Monday with the 14-day Relative Strength Index at 24.246, below the lower neutral range of 30, Reuters data showed.

The rupee ended weaker at 128.50/60 against the dollar from Friday’s close of 128.10/25, on importer dollar demand.

Dealers expect the rupee will depreciate further as the Central Bank keeps policy rates unchanged on Friday amid heavy depreciation and credit growth pressure.