Budget ahead, Bourse at seven-week low

Wednesday, 31 October 2012 01:10 - - {{hitsCtrl.values.hits}}

Stocks dipped on Tuesday to a more-than seven-week low as most investors waited on the sidelines ahead of the announcement of 2013 Budget, while the rupee fell on importer dollar demand, dealers said.

The Colombo Stock Exchange’s main index fell 0.55%, or 30.26 points, to end at 5,520.62, its lowest since 7 September.“At the moment, investors are looking for the direction with lack of liquidity,” said a stockbroker who declined to be identified.

Analysts said investors were waiting for an indication of the market’s direction from the annual budget, scheduled for 8 November, and a raft of quarterly earnings due out from next week.

Turnover was Rs. 307.8 million ($ 2.37 million), a third of this year’s daily average of Rs. 925 million.

Foreigners were net buyers of Rs. 12.6 million worth of shares, extending the net foreign inflow so far this year to Rs. 33.73 billion.

The rupee ended weaker at 130.15/25 to the dollar from Friday’s close of 129.75/95, dealers said.