Bourse dips to one-month low

Reuters: Stocks fell to a one-month low on Monday, dragged by top mobile phone operator, Dialog Axiata, after it reported a 30% fall in its December quarter profit.

The main share index fell 0.95%, or 55.67 points, to end at 5,774.59, its lowest since 15 January as concerns over the broader economy also weighed.

The International Monetary Fund warned last week of slower growth, high inflation and lower tax revenue risks, prompting speculation the Government may turn to expensive commercial borrowing to bridge the budget gap, which would drive interest rate higher.

Shares of Dialog Axiata fell 4.21% to Rs. 9.10.

The day’s turnover was Rs. 869.84 million ($ 6.87 million), lower than this year’s daily average of Rs. 1.11 billion.

Foreign investors were net buyers of Rs. 43.6 million worth of shares on Monday, but they have been net sellers of Rs. 915.7 million so far this year.

The rupee ended weaker at 126.90/95 to the dollar from Friday’s close of 126.65/80 due to importer dollar demand, dealers said.