Bourse, rupee dip

Thursday, 28 March 2013 00:21 - - {{hitsCtrl.values.hits}}

Reuters: Stocks ended tad weaker on Wednesday to hit a one-week low despite foreign inflows, as investors were worried over upward pressure on interest rates after yields in Treasury bills rose for a fourth straight week.

The main index ended 0.01% or 0.56 points weaker at 5,744.99, its lowest level since 20 March.

“Worries about high interest rates kept local buyers away from the market,” said a stockbroker on condition of anonymity.

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.

Foreign investors were net buyers of Rs. 408.2 million ($ 3.22 million) worth of shares, extending the year-to-date net foreign inflow to Rs. 4.95 billion worth of shares.

Turnover was Rs. 938 million, less than this year’s daily average of Rs. 992 million.

Stockbrokers said the market was concerned over a UN resolution passed last week that urged Sri Lanka to carry out credible investigations into killings and disappearances during its nearly 30-year civil war, in case non-compliance should lead to some form of sanctions.

The rupee fell to 126.85/90 to the dollar, easing from Monday’s close of 126.73/75, on light importer demand for dollars in dull trade, dealers said.

Both the stock and money markets were closed on Tuesday.