CSE up on large caps; rupee firmer

Saturday, 9 March 2013 00:00 - - {{hitsCtrl.values.hits}}

Reuters: Shares edged up on Friday for the third session, with the index ending at a two-week high even though many cautious retail investors awaited some direction on interest rates after the Central Bank held policy rates steady, brokers said.

The Central Bank, before the market opened, left policy rates unchanged for a third straight month, as expected, saying inflation was expected to ease and reach more favourable levels by the end of the year.

The main share index rose 0.2%, or 11.37 points, to 5,691.39, its highest since 22 February.

The Central Bank’s decision on rates came after yields on Treasury bills reversed their falling trend on Wednesday for the first time in 13 weeks.

The day’s stock market turnover was Rs. 1.21 billion ($ 9.51 million), compared with a daily average this year of Rs. 1.05 billion.

Foreign investors were net buyers of Rs. 206.1 million, extending year-to-date foreign inflows to Rs. 2.73 billion.

The rupee ended firmer at a three-week closing high of 126.50/60 to the dollar compared with Thursday’s finish of 127.05/15, due to dollar sales by banks and exporters on expected foreign inflows to the stock market, dealers said.