Retailers take profit, drag Bourse down

Tuesday, 14 May 2013 01:20 - - {{hitsCtrl.values.hits}}

Reuters: Shares edged down from a near 1-1/2 year high on Monday as retail investors took profits in low trade after seven straight sessions of gains.

The main stock index fell 0.18%, or 10.97 points, to 6,239.03, slipping from its highest close on Friday since 11 November 2011.

“Retail profit-taking brought the market down on dull trade,” a stockbroker said on condition of anonymity.

The market shrugged off a 50 basis point rate cut by the Central Bank on Friday, a decision speculated since early April.

On Friday, the Central Bank cut its key monetary policy rates by 50 basis points before the market opened, following some of its regional peers, to boost economic growth amid subdued demand.

The market had gained about 8% through Friday since Treasury Secretary P.B. Jayasundera’s remarks on 9 April that interest rates could ease in May-June.

Monday’s turnover was Rs. 535 million ($ 4.24 million), half of this year’s daily average of Rs. 1.02 billion.

Foreign investors were net buyers of Rs. 153 million of shares, extending the net foreign inflow this year to Rs. 9.75 billion. Last year, the Bourse saw a net inflow of $ 303 million.

The rupee edged down to 126.25/30 per dollar, down from Friday’s close of 126.23/28, on importer demand for dollars, currency dealers said.