Bourse falls on large caps; turnover slumps to near 4-month low
Wednesday, 6 November 2013 00:00
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Reuters: Stocks fell to a one-week low on Tuesday, declining for a third straight session, led by large caps with the turnover slumping to a near four-month low due to lack of retail investor participation, stockbrokers said.
The main index ended down 0.24%, or 14.50 points, at 5,912.91, its lowest close since 29 October.
The day’s turnover was Rs. 220.9 million ($ 1.68 million), the lowest since 17 July and around a quarter of this year’s daily average of about Rs. 866.4 million.
Stockbrokers said the market had not seen a surge despite a declining trend in the interest rates after the Central Bank cut the policy rates to multi-year low last month.
They said the market would not see a sustained gaining trend unless retail investors return to the bourse. The market has lost 0.82% since the central bank cut its key policy rates by 50 basis points on 15 October. Shares in the market heavyweight Ceylon Tobacco Co Plc fell 1.17% to Rs. 1107.
Foreign investors were net sellers for the first time in the last five sessions, selling a net Rs. 5.6 million worth of shares. But they have been net buyers of Rs. 23.27 billion worth of shares so far this year.
