Stocks hit 7-week low after grim IMF report

Reuters: Stocks hit a seven-week low on Thursday after the International Monetary Fund painted a grim picture of the island nation’s macroeconomic indicators.

The main share index ended 0.08% weaker at 5,726.11; its lowest since 2 January.

The IMF said last week the economy faced high inflation and lower tax revenue risks, prompting speculation the Government may turn to expensive commercial borrowing to bridge the budget gap.

Foreign investors bought a net Rs. 296.6 million worth of shares, but they have been net sellers of Rs. 542 million worth so far this year.

The rupee ended weaker at 127.15/20 to the dollar recovering from its lowest since 3 January and from Wednesday’s close of 127.35/45.