Sri Lanka stocks fall on policy inaction

Published: Tuesday, 7 Aug 2012

COLOMBO, Aug 7 (Reuters) - Sri Lankan stocks fell 0.6 percent on Tuesday in thin trade after authorities delayed promised policy measures aimed at boosting sentiment.

The Colombo Stock Exchange's main index lost 0.61 percent, or 30.28 points, to end at 4,898.22, its lowest since July 26.

"The market fell due to the lack of positive news after waiting almost a week for the promised measures, including more retail credit," a stockbroker said on condition of anonymity.

Treasury Secretary P.B. Jayasundera made the promises last week in what was seen as an effort to revive the stock market which has fallen 19.4 percent since the start of the year.

The market shrugged off a central bank decision to hold key policy rates steady for a fourth straight month as expected.

Turnover was 319.9 million rupees, around a third of this year's daily average of 885.4 million rupees.

Foreign investors were net buyers for a 12th straight session, buying a net 107.8 million rupees worth of shares, extending the net foreign inflow this year to 26.01 billion rupees ($197.22 million).

The rupee closed steady at 131.95/132.00 for a third straight session as importer dollar demand was offset by greenback sales by banks, dealers said.

(Reporting by Shihar Aneez; Editing by Nick Macfie)

((shihar.aneez@thomsonreuters.com)(+94-11-232-5540)(Reuters Messaging: shihar.aneez.thomsonreuters.com@reuters.net))

Keywords: MARKETS SRILANKA/

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