Stocks extend gain on rate cut; foreigners become net sellers

14 Dec 2012 - {{hitsCtrl.values.hits}}

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)

Stock

Stocks extend gain on rate cut; foreigners become net sellers

Most Popular Articles

Sri Lanka’s IMF reserve target comes under pressure: KPMG

Sri Lanka explores local gold refinery as IMF regulations delay import tax relief for jewellers

CSE ends lower as turnover falls to year’s lowest, ASPI holds key support

HMD introduces latest range of feature phones to Sri Lanka

CSE opens the week lower as broad-based selling offsets strong institutional activity

Crossings dominate market activity as ASPI extends decline

Latest News

Sri Lanka passport rises to 94th in 2026 Henley Index

Strong wind advisory issued for several areas

DAPH calls for coordinated plan to eliminate rabies by 2030

Criminal record or false info could permanently block US entry: Embassy

Tunnel collapse in India kills 12 workers