Retail selling drags Bourse

Wednesday, 6 February 2013 00:38 - - {{hitsCtrl.values.hits}}

Reuters: Sri Lankan shares extended losses for a fourth day on Tuesday to a three-week low on retail selling in light trading volume as investors stayed away in anticipation of the central bank’s decisions on key policy rates next week, brokers said.

The main share index fell 0.32 percent, or 18.39 points, to end at 5,781.30, its lowest since January 15. The day’s turnover was 447.3 million rupees ($3.54 million), less than this year’s daily average of 1.18 billion rupees.

“There are still attractive debt products compared to equities and people are still not convinced about equities,” a stockbroker said on condition of anonymity.

The central bank will announce its key monetary policy rates for February next Tuesday. Analysts said investors might wait to see another rate cut before buying into equities.

Foreign investors were net buyers of 4.1 million rupees worth of shares on Tuesday, but they have been net sellers of 869.4 million rupees so far this year.

The rupee ended firmer at 126.30/40 to the dollar from Friday’s close of 126.45/55. Stock and currency markets were closed for a national holiday on Monday.