Stock market at 8-week low

Sri Lankan stocks eased to their lowest in eight weeks on Thursday in light trade. Retail investors sold bank and finance shares but many stayed away, waiting for direction from next week’s budget and corporate earnings.

The rupee edged weaker on importers’ demand for dollars, dealers said.

The Colombo Stock Exchange’s main index fell 0.35% or 19.10 points, to end at 5,494.54, its lowest since Sept. 6.

The government will present the 2013 budget on Nov.8 while several companies will release quarterly results next week.

Turnover on the Sri Lanka exchange was 138.2 million rupees ($1.06 million), well below this year’s daily average of 919 million rupees.                            

 Foreigners bought a net 13.3 million rupees worth of shares, extending the net foreign inflow so far this year to 33.9 billion rupees.

The rupee ended weaker at 130.30/40 to the dollar from Wednesday’s close of 130.20/25.