Classifieds | Archives | Jobs | About TGT | Contact | Subscribe
Last updated 0 minute ago
Printer Friendly Version | TGT@Twitter | RSS Feed |
High rates drag Lanka bourse to 3-month low
December 05, 2012
 Print    Send to Friend

COLOMBO: Sri Lankan stocks ended weaker for the third straight session on Tuesday, easing to a three-month low as high interest rates weighed on sentiment with investors dumping risky assets to shift to high-yielding government securities.

The Colombo Stock Exchange’s main index ended 0.12 per cent or 6.26 points, weaker at 5,331.45, its lowest close since Sept.4. The index has now fallen to the over-sold region, Thomson Reuters data showed.

“Negative sentiment will continue until interest rates come down,” said a broker who declined to be identified.

The yield for 364-day T-bills gained for a seventh consecutive week at an auction on Wednesday. Analysts say investors have been shifting to fixed deposits from equities since the central bank kept key policy rates at three-year highs on Nov.9.

The day’s turnover was Rs505.5 million ($3.90 million), well below this year’s daily average of Rs898.5 million. Foreign investors bought a net 156.4 million rupees worth of shares, extending the net foreign inflow this year to 35.6 billion rupees.

The index fell to an over-sold territory on Tuesday with the 14-day relative strength index falling to 29.975, below the lower end of the neutral range of 30. 


Add this page to your favorite Social Bookmarking websites
Post a comment
Related Stories
Sri Lanka’s spice exports leap by 40% last year
COLOMBO: As Sri Lanka’s spice exports leaped by a strong 40% emphasising the hidden value of its historic crops, the nation started a new push to improve spice exports on..
IFC invests in Cargills Foods to create jobs, help growth
COLOMBO: IFC, a member of the World Bank Group, is investing $20 million in Sri Lanka s Cargills Foods Company (Private) Limited, the retail subsidiary of Cargills (Ceylo..
Sri Lankan stocks slip from 3-year high on low trade
COLOMBO: Sri Lankan stocks slipped on Wednesday, retreating from a three-year high hit on Tuesday, led by illiquid shares in low trade, with retail profit-taking in specu..
Sri Lankan stocks rise on low interest rates
COLOMBO: Sri Lankan stocks rose on Wednesday, hovering near three-year highs, led by bank and finance companies as low interest rates and earning hopes helped boost appet..
Sri Lanka’s central bank holds rates steady
COLOMBO: Sri Lanka’s central bank on Friday kept policy rates steady at multi-year lows for a seventh straight month, as expected, despite private sector credit growth sl..
Advertise | Copyright