Thursday, December 13, 2012

Sri Lankan stocks extend gain on rate cut

COLOMBO: Sri Lankan stocks rose for the fourth straight session on Thursday 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 Nov. 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 702.28 million rupees ($5.46 million) Foreign investors were net sellers of 23.4 million rupees worth of shares. They have been net buyers of 36.56 billion rupees 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.

source -

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