Stock market gathers more strength

Friday, 14 December 2012 01:08 - - {{hitsCtrl.values.hits}}

Reuters: Stocks rose for the fourth straight session on Thursday to nearly a one-month high, bolstered by a surprise rate cut by the Central Bank the previous day to support economic growth.

The Colombo Stock Exchange’s main index closed 0.56% or 30.72 points firmer at 5,547.36, its highest close since 16 November. It jumped 1.42% in early trade.

The Central Bank reduced the repurchase rate and the reverse repurchase rate by 25 basis points to 7.50% and 9.50% respectively on Wednesday, lowering them from three-year highs.

“With rates coming down, investors are looking at the market again,” said a stockbroker.

Turnover stood at Rs. 702.28 million.

Foreign investors were net sellers of Rs. 23.4 million worth of shares.

They have been net buyers of Rs. 36.56 billion so far this year.

The rupee closed firmer at 128.40/50 to the dollar compared with Wednesday’s close of 128.65/70 on exporter dollar conversion ahead of the holiday season, dealers said.