Stocks hit five - week high on policy action hopes

03 Aug 2012 - {{hitsCtrl.values.hits}}

REUTERS: Sri Lankan stocks rose to a five-week high yesterday on hopes the government will act to revive trading on an exchange that has fallen 18 percent so far this year. Markets were closed on Wednesday for a public holiday.

The Colombo Stock Exchange’s main index edged up 0.31 percent, or 15.19 points, to 4,960.05, its highest since June 29.

“The market has responded positively to the (Treasury) meeting outcome, but it will take a lot more time to see policy action being implemented,” said a stockbroker, asking not to be named.

The action includes an enhanced credit facility to revive retail investor interest in the short term and steps to build broker capital infrastructure in the medium term. Foreign investors were net buyers of Rs.102.5 million worth of shares, extending the net foreign inflow this year to Rs.25.7 billion ($194.92 million).

The day’s turnover was Rs.754.5 million, below this year’s daily average of Rs.897.3 million, but much improved from the July daily average of Rs.424.3 million.

The rupee closed steady at 131.70/132.10 against the dollar, as importer dollar demand offset banks dollar sales. Dealers expect the rupee to weaken further on expected importer dollar demand.

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Stocks hit five - week high on policy action hopes

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