Shares; rupee flat on economic worries

(Reuters) - Sri Lanka’s stock market ended barely changed amid low volumes yesterday as investors were stayed away on economic worries in the post-war bourse with a $1.9 billion IMF loan delay.
The rupee closed flat at 114.90/94 a dollar, as the central bank mopped up dollars at 114.90 rupees to support the currency for an eight week.
The benchmark index edged up 0.01 percent or 0.24 points to 2369.11, its third straight day of gains. The bourse hit a one-year high of 2447.2 on June 22.
Traders said a delay by the International Monetary Fund in approving a $1.9 billion loan requested by the Sri Lankan government and lack of foreign participation are weighing on the market.
“The market sentiments are very low, high net worth and medium term investors are staying away till a clear picture on the IMF loan in coming out,” said Geeth Balasuriya, head of research at Acuity Stockbrokers in Colombo.
Despite the end of a 25-year war with the Tamil Tiger separatists on May 18, foreign investments are still a net outflow as institutional buying has not picked up. Analysts say they are waiting to see concrete signs of post-war growth.
The biggest listed private lender Commercial Bank of Ceylon closed 1.76 percent firmer at 130 rupees a share, calculated on a weighted average.
Market heavyweight Sri Lanka Telecom closed flat at 45.75 rupees a share while conglomerate John Keells Holdings closed 0.19 percent weaker at 129.75 rupees a share.
Daily’s turnover was 168.47 million Sri Lankan rupees ($1.47 million), well below last year’s daily average of 464 million.
The bourse is still up 57.6 percent in 2009 and 24.2 percent since the government declared victory in the war on May 18.
The central bank on Monday said the trade deficit for the first five months of 2009 narrowed 61.9 percent to $981.5 million, while its gross official reserves edged up in May for the second straight time since July.
The bank kept its main policy rates unchanged, citing an expected pickup in growth later this year.
The interbank lending rate or call money rate fell to 9.396 percent from Monday’s 10.285 percent.