Bourse slips from one-month high

Saturday, 15 December 2012 00:10 - - {{hitsCtrl.values.hits}}

Reuters: Stocks slipped on Friday, ending a four-session gaining streak due to thin volume and profit taking in telecom shares.

The Bourse in the past two sessions was bolstered by a surprise rate cut by the Central Bank to support growth. The Central Bank reduced the key rates by 25 basis points on Wednesday, lowering them from three-year highs.

The Colombo Stock Exchange’s main index closed 0.44 per cent or 24.64 points weaker at 5,522.72, from its highest close since 16 November.

“Retail selling brought the market down,” said a stock broker, asking not to be named. Shares in leading mobile phone operator Dialog Axiata closed 1.2 per cent weaker at Rs. 8.20. Top fixed line telephone operator Sri Lanka Telecom fell 1.61 per cent to Rs. 42.70.

Commercial Bank, which fell 0.68 per cent to Rs. 102, accounted for more than 40 per cent of the day’s turnover of Rs. 505.43 million ($ 3.93 million).

Foreign investors were net buyers of Rs. 22.8 million worth of shares, extending the net foreign buying so far this year to Rs. 36.59 billion.

The rupee closed firmer at 128.60/70 to the dollar compared with Thursday’s close of 128.40/50 on importer demand for dollars, dealers said.