Classifieds | Archives | Jobs | About TGT | Contact | Subscribe
Last updated 25 minutes 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 earnings from exports, tourism rise
COLOMBO: Sri Lanka’s external sector improved further with continued inflows being recorded in the Balance of Payments (BOP). Cumulative foreign exchange inflows to the c..
Sri Lanka’s inflation reaches low single digit levels by end 2014
COLOMBO: The Central Bank of Ceylon said that prudent monetary management, relatively stable exchange rate, moderation in prices of both food and non-food imported items,..
Sri Lanka and China sign Free Trade Agreement
COLOMBO: Sri Lanka and China have signed a memorandum of understanding and agreed to establish a joint working group on trade to study the feasibility of a China-Sri Lank..
Sri Lanka improves ranking to 58th position on Nation Brands Table
COLOMBO: Sri Lanka has improved its ranking on The Brand Finance Nation Brands report, which was recently released, with a significant increase from last year. Sri Lanka ..
Sri Lanka’s CB holds rates at record lows as expected
COLOMBO: Sri Lanka’s central bank (CB) kept key policy rates steady at record lows for an 11th straight month on Friday, as expected, saying past policy measures have hel..
Advertise | Copyright