Stocks extend gain on rate cut; foreigners become net sellers

14 December 2012 02:45 am - 0     - {{hitsCtrl.values.hits}}

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Sri Lankan stocks rose for the fourth straight session yesterday to nearly a one-month high, bolstered by a surprise rate cut by the Central Bank the previous day to support economic growth.

The Colombo Stock Exchange’s main index closed 0.56 percent or 30.72 points firmer at 5,547.36, its highest close since November 16. It jumped 1.42 percent in early trade.

The Central Bank reduced the repurchase rate and the reverse repurchase rate by 25 basis points to 7.50 percent and 9.50 percent, respectively on Wednesday, lowering them from three-year highs.

“With rates coming down, investors are looking at the market again,” said a stockbroker.

Turnover stood at Rs.702.28 million ($5.46 million). Foreign investors were net sellers of Rs.23.4 million worth shares. They have been net buyers of Rs.36.56 billion so far this year.

The rupee closed firmer at 128.40/50 to the dollar compared with Wednesday’s close of 128.65/70 on exporter dollar conversion ahead of the holiday season, dealers said.

(REUTERS)

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