Bourse dips on year-end settlements

Reuters: Stocks dipped for the third straight session on Thursday on financial year settlements for many listed firms, while many investors stayed on the sidelines on worries over upward pressure on interest rates.

The main index ended 0.16% or 9.31 points weaker at 5,735.68, its lowest level since 20 March.

“The market is down on year-end settlements and book balancing,” said a stockbroker on condition of anonymity. “High interest rates are also hurting sentiment.”

The financial year for some of the main listed companies ends on 31 March.

Yields in T-bills rose for the fourth straight week at Monday’s auction even though the Central Bank had kept its key policy rates unchanged for a third month in a row.,

Turnover was Rs. 2.04 billion ($ 16.08 million), twice this year’s daily average of Rs. 1.01 billion.

Foreign investors were net sellers of Rs. 33.8 million worth of shares, but they have been net buyers of Rs. 4.92 billion worth of shares so far this year.

The rupee firmed slightly at 126.80/85 to the dollar, from Wednesday’s close of 126.85/90, dealers said.

Both the stock and money markets are closed for a holiday on Friday.