* Foreign outflow 788.2 mln; highest since Sept 7
* Foreigners sell Commercial bank
* Central bank sells more than $50 mln to defend the rupee
Sri Lanka's stock market gained for a third day on Tuesday to a near three-week high, although foreign investors offloaded top lender Commercial Bank of Ceylon, while the central bank kept the rupee steady by selling over $50 million.
Foreign outflow was at 788.2 million Sri Lanka rupees ($6.92 million), as offshore investors sold top lender Commercial Bank, which edged up 0.4 percent and accounted for around 80 percent of the day's turnover.
The day's offshore selling extended year-to-date outflow to
18.8 billion. Foreigners sold a record 26.4 billion rupees in stocks in 2010.
The island nation's main share index closed 0.54 percent or 32.51 points firmer at 6,015.09, its highest close since Dec. 8.
The market has been looking for easing of credit limits imposed by the SEC, which along with the resignation of the regulator's head and deputy and a 3 percent currency devaluation have dampened the market.
Any new direction from the new SEC head on credit limits is expected in January, brokers said.
Last month brokers, who complained that tougher regulation was hurting stock market prices, met President Mahinda Rajapaksa to urge him to intervene in his capacity as finance minister to revive the slumping bourse.
Since Oct. 1, the bourse has fallen 11.8 percent. The Colombo Stock Exchange has fallen to Asia's ninth best performer with a year-to-date loss of 9.35 percent after being at the top until June. It delivered Asia's best returns in 2009 and 2010.
The rupee closed flat at 113.89/90 rupees a dollar for a 24th straight session with the central bank selling more-than $50 million to defend it, dealers said.
The central bank last week said it can continue to maintain the rupee exchange by selling dollars from foreign reserves as it expects large dollar inflows in the coming
months.
The bank has spent around $610 million to keep the exchange rate steady since a 3 percent devaluation on Nov. 21. It had spent a net of $1.36 billion this year until the end of September holding back depreciation pressure.
* Foreigners sell Commercial bank
* Central bank sells more than $50 mln to defend the rupee
Sri Lanka's stock market gained for a third day on Tuesday to a near three-week high, although foreign investors offloaded top lender Commercial Bank of Ceylon, while the central bank kept the rupee steady by selling over $50 million.
Foreign outflow was at 788.2 million Sri Lanka rupees ($6.92 million), as offshore investors sold top lender Commercial Bank, which edged up 0.4 percent and accounted for around 80 percent of the day's turnover.
The day's offshore selling extended year-to-date outflow to
18.8 billion. Foreigners sold a record 26.4 billion rupees in stocks in 2010.
The island nation's main share index closed 0.54 percent or 32.51 points firmer at 6,015.09, its highest close since Dec. 8.
The market has been looking for easing of credit limits imposed by the SEC, which along with the resignation of the regulator's head and deputy and a 3 percent currency devaluation have dampened the market.
Any new direction from the new SEC head on credit limits is expected in January, brokers said.
Last month brokers, who complained that tougher regulation was hurting stock market prices, met President Mahinda Rajapaksa to urge him to intervene in his capacity as finance minister to revive the slumping bourse.
Since Oct. 1, the bourse has fallen 11.8 percent. The Colombo Stock Exchange has fallen to Asia's ninth best performer with a year-to-date loss of 9.35 percent after being at the top until June. It delivered Asia's best returns in 2009 and 2010.
The rupee closed flat at 113.89/90 rupees a dollar for a 24th straight session with the central bank selling more-than $50 million to defend it, dealers said.
The central bank last week said it can continue to maintain the rupee exchange by selling dollars from foreign reserves as it expects large dollar inflows in the coming
months.
The bank has spent around $610 million to keep the exchange rate steady since a 3 percent devaluation on Nov. 21. It had spent a net of $1.36 billion this year until the end of September holding back depreciation pressure.
