Colombo bourse unmoved by reserve money cuts by Central Bank
2008-11-26 16:58:40

The Central Bank cuts in reserve money ratios by banks, thereby releasing Rs 17 billion into the market had no impact on Colombo share prices with the market still closing lower on Tuesday.

Vajira Premawardhana, Executive Director Lanka Orix Securities said, the shortfall of Rs. 15 billion to Rs. 17 billion in the system will be covered when the Central Bank releases its Rs. 17 billion reserve money. “But this will not have an impact in the stock market because the stock market is coming down for a different reason and that is due to forced selling of investor shares by stock brokering firms,” he added.

The All Share Index lost 53.96 points to 1,571.29 while the Milanka dipped by 56.44 points to 1,764.05 at stock market close. The turnover was Rs 86.7 million.

Among the key trades, Dialog fell 25 cents to Rs 6 for a stock of 289,000 shares, JKH dropped by Rs 1.50 to Rs 62.25 with 41,600 shares traded while Distilleries fell Rs 150 to Rs 51.25 for 460,700 shares .