Bourse edges down in dull trade

Reuters: Shares edged down on Tuesday led by losses in diversified shares as investors turned cautious amid a weakening rupee and high interest rates.

The main stock index ended down 0.14% at 7,152.43.

Turnover stood at Rs. 613.5 million ($ 4.39 million), well below this year’s daily average of Rs. 1.13 billion. The turnover has been about half of this year’s daily average since 31 August, the Bourse data showed.

“Investors are waiting to see how the Government is going to bridge the budget deficit and where the revenue is going to come. That is the single biggest thing they are waiting to see,” said Dimantha Mathew, a research manager at First Capital Equities Ltd.

A weak rupee curbed investor risk appetite and rising market interest rates also hit sentiment, with T-bill yields at their highest in more than five months at the last auction.

The rupee fell 0.3% on Tuesday, hitting a record low for a third session in a row due to importer dollar demand.

Foreign investors were sellers of Rs. 11.8 million worth shares on Tuesday extending the year-to-date net foreign selling to Rs. 3.02 billion worth of equities.

Shares in Carson Cumberbatch Plc fell 1.25% while Dialog Axiata Plc fell 0.88%.