Reuters: Shares ended slightly weaker on Tuesday, led by banks, with foreign investors turning net seller of stocks while many investors waited for more clarity on policy direction, brokers said.

The main stock index ended 0.04%, or 3.13 points, weaker at 7,085.93, further slipping from its highest close since 25 September hit on Friday.

“Still investors are not fully into the market and they are on a wait and see mode due to lack of clarity on policy,” said Dimantha Mathew, a research manager at First Capital Equities Ltd.

Prime Minister Ranil Wickremesinghe is to make a statement next month to outline the policies of the new Government.

Foreign investors were net sellers of Rs. 104.97 million ($745,790) worth of shares extending the year to date net forging outflow to Rs. 3.08 billion.

Turnover was Rs. 664.2 million, compared with this year’s daily average of 1.12 billion.

Shares in Ceylinco Insurance Plc fell 3.81% while Lanka ORIX Leasing Co Plc slipped 2%.

Rupee ends higher on bank dollar sales

Reuters: The rupee closed slightly firmer on Tuesday, as dollar selling by a private bank surpassed demand for the greenback by importers, dealers said.

The rupee closed at 141.05/141.10 per dollar, compared with Monday’s close of 141.24/28.

Dealers said the two State-run banks through which the Central Bank directs the market, were not seen selling dollars, but a local private bank sold the US currency in early trade.

“The rupee ended firmer on bank dollar sales, but the moment the bank sales eased we have seen rupee under pressure with importer demand,” said a dealer who declined to be identified.

The rupee hit a record low of 141.40 per dollar on 28 September, but has recovered over the past few days after a State-run bank sold dollars.

The Finance Ministry on Friday imposed a 100% margin on letters of credit for motor vehicles to discourage unnecessary imports, in a move to prevent dollar outflows and further weakening of the rupee.