Bourse stays on the up

Wednesday, 12 December 2012 01:18 - - {{hitsCtrl.values.hits}}

Reuters: Stocks edged up to a three-week high on Tuesday led by foreign buying in high caps, but concern over high interest rates weighed on sentiment, trimming the day’s turnover. The rupee slipped on importer dollar demand.

The Colombo Stock Exchange’s main index rose 0.24% or 12.92 points at 5,417.78, its highest close since 20 November.

“Foreign activity in high-cap shares pushed the Bourse. The market is also slowing down due to low local and retail participation ahead of the Christmas holidays,” said a stockbroker who declined to be identified.

Foreign buying accounted for 57.7% of the day’s Rs. 488.97 million ($ 3.80 million) turnover.

Foreign investors bought a net Rs. 36.6 million worth of shares, extending the net foreign inflow this year to Rs. 36.62 billion.

Yields in 182- and 364-day T-bills rose for an eighth straight week on Wednesday, hitting retail investor sentiment.

The rupee closed slightly weaker at 128.80/90 to the dollar compared with Monday’s close of 128.75/85 on seasonal importer demand for dollars, dealers said.