Stocks fall on policy inaction: Reuters

Wednesday, 8 August 2012 01:18 - - {{hitsCtrl.values.hits}}

Stocks fell 0.6 per cent on Tuesday in thin trade after authorities delayed promised policy measures aimed at boosting sentiment according to a report filed by Reuters.

It said the Colombo Stock Exchange’s main index lost 0.61 per cent, or 30.28 points, to end at 4,898.22, its lowest since 26 July.

“The market fell due to the lack of positive news after waiting almost a week for the promised measures, including more retail credit,” a stockbroker said on condition of anonymity.

Treasury Secretary P.B. Jayasundera made the promises last week in what was seen as an effort to revive the stock market which has fallen 19.4 per cent since the start of the year.

The market shrugged off a Central Bank decision to hold key policy rates steady for a fourth straight month as expected.

Turnover was Rs. 319.9 million, around a third of this year’s daily average of Rs. 885.4 million.

The rupee closed steady at 131.95/132 for a third straight session as importer dollar demand was offset by greenback sales by banks, dealers said.