Bourse ends flat, rupee firmer

Reuters: Shares ended lower for a fifth straight session on Wednesday as retail investors sold telecom shares while foreign interest, mainly in Hatton National Bank, boosted turnover, brokers said.

The main share index fell 0.02%, or 1.21 points, to end at 5,780.09, its lowest since 15 January.

Turnover was Rs. 1.17 billion ($ 9.25 million), almost equal to this year’s daily average of Rs. 1.18 billion.

“Foreign activity boosted the day’s turnover, but most of the foreign investors sold banking shares with some foreign buying seen,” a stockbroker said on condition of anonymity.

Hatton National Bank fell 0.07% to Rs. 145 while top fixed-line phone operator Sri Lanka Telecom fell 1.82% to Rs. 43.20.

Foreign investors were net sellers of Rs. 70.59 million worth of shares, extending the net selling so far this year to Rs. 940 million.

Analysts said many investors were on the sidelines ahead of the Central Bank’s key monetary policy announcement for February. They said investors might wait for another rate cut before buying into equities.

The rupee ended firmer at 126.15/25 to the dollar from Tuesday’s close of 126.30/40 as exporters sold dollars, dealers said.