Stock

Bourse at 1-week low on interest rate concerns

28 Mar 2013 - {{hitsCtrl.values.hits}}

Stocks ended tad weaker yesterday to hit a one-week low despite foreign inflows, as investors were worried over upward pressure on interest rates after yields in Treasury bills rose for a fourth straight week.

The main index ended 0.01 percent or 0.56 points weaker at 5,744.99, its lowest level since March 20.

“Worries about high interest rates kept local buyers away from the market,” said a stockbroker on condition of anonymity.

Yields in T-bills rose for the fourth straight week at Monday's auction even though the Central Bank had kept its key policy rates unchanged for a third month in a row.

Foreign investors were net buyers of Rs.408.2 million ($3.22 million) worth of shares, extending the year-to-date net foreign inflow to Rs.4.95 billion worth of shares.

Turnover was Rs.938 million, less than this year's daily average of Rs.992 million.

Stockbrokers said the market was concerned over a U.N. resolution passed last week that urged Sri Lanka to carry out credible investigations into killings and disappearances during its nearly 30-year civil war, in case non-compliance should lead to some form of sanctions.

The rupee fell to 126.85/90 to the dollar, easing from Monday's close of 126.73/75, on light importer demand for dollars in dull trade, dealers said.Both the stock and money markets were closed for a holiday on Tuesday.

(REUTERS)

Stock

Bourse at 1-week low on interest rate concerns

Most Popular Articles

LAUGFS gas prices remain unchanged

New US tariff could erode Sri Lanka’s export competitiveness: CCC warns

CSE slides sharply as Middle East tensions trigger broad-based selling

Global tariffs and geopolitical shockwaves trigger broad market selloff on CSE

CSE extends losses as geopolitical risks and tariff concerns weigh on sentiment

CSE rebounds as lower oil prices and strong crossings lift sentiment

Latest News

Pakistan PM says US-Iran peace deal signing expected within 24 hours

NBRO updates landslide early warning

Chinese-owned supermarket raided over consumer law violations

Environmental protection needs public participation beyond laws: Minister

Joint Opposition seeks dialogue with CIABOC chief