Stocks end down on profit taking

Reuters: Stocks closed down at their lowest level in nearly four weeks on Tuesday after late profit taking erased an early gain following a decision by the Securities and Exchange Commission (SEC) to ease rules on trade.

After the market closed on Monday, the SEC said it had eased broker credit margins and lifted a ban on directors and workers at broking firms, and their spouses, selling stocks within six months of their purchase.

It imposed the ban early this year.

The Colombo Stock Exchange’s main index opened firmer and gained 0.94 per cent early but profit taking in the afternoon pulled it down to end 0.24 per cent, or 13.85 points, weaker at 5,833.32, its lowest level since 13 September.

Turnover was Rs. 527.8 million ($ 4.11 million), well below half of this year’s daily average of Rs. 954 million.

The Bourse saw a net foreign outflow of Rs. 12.3 million. However, foreigners have been net buyers to the tune of Rs. 32.38 billion this year.

The rupee closed flat at 128.25/35 to the dollar, as importer demand for dollars was offset by dollar sales by a foreign bank, dealers said.