Stock market ends weaker

Saturday, 17 November 2012 03:52 - - {{hitsCtrl.values.hits}}

(Reuters) - Sri Lankan stocks finished all but unchanged near a two-week low on Friday, losing ground marginally for the third straight session, while many investors awaited the central bank’s monetary policy announcement later in the day.

The Colombo Stock Exchange’s main index edged down 0.03%, or 1.93 points, to end at 5,556.32, its lowest since Nov. 5.

The central bank was expected to freeze key policy rates at three-year highs. Investors have been shifting to fixed deposits from equities due to high interest rates, stockbrokers say.

“The volumes are low as institutional and retail investors are on the sidelines due to high interest rates,” said a stockbroker on condition of anonymity.

Bourse...

The yield on the 364-day T-bill gained 8 basis points to 12.73% at a weekly auction on Wednesday, rising for the fifth consecutive week, central bank data showed.

Foreigners bought a net 212.5 million Sri Lanka rupees ($1.64 million) worth of shares, extending the net foreign inflow this year to 35.62 billion rupees. Turnover was 431.5 million rupees, less than half of this year’s daily average of 899.1 million rupees.

The rupee closed weaker at 129.90/130.00 to the dollar compared with Thursday’s close of 129.85/90 on importer dollar demand, dealers said.