Stocks end flat as economic woes weigh

Reuters: Sri Lankan shares barely moved on Friday in thin trade with economic woes and rising interest rates weighing on the market.

The main share index edged up just 0.01 percent, or 0.56 points, to 5,222.09, its highest close since May 9. It jumped more than 2 percent on Wednesday on retail buying on the hope that President Mahinda Rajapaksa would soon order the release of former army chief Sarath Fonseka and prompt more foreign inflows.

“Investors stayed away ahead of the possible release to see the direction after the release,” said an analyst asking not to be named.

Analysts said institutional investors remained concerned about economic woes, with uncertainty over the rupee and rising interest rates.

Turnover was 157.7 million rupees ($1.22 million), the lowest since April 9, and well below this year’s daily average of 1.1 billion rupees.

The index is one of the worst performers among Asian markets, with a 14.03 percent loss so far this year.

The rupee ended edge down at 129.60/80 against the dollar from Thursday’s close of 129.10/20, on importer demand for dollars, dealers said.