CSE ends higher as banks, diversified stocks rally; rupee falls

Reuters: Sri Lankan shares closed firmer on Tuesday, led by gains in diversified and banking stocks, while the rupee weakened on higher importer dollar demand. 

The country’s benchmark stock index ended 0.42% up at 5,683.47 after slipping from a four-month high on Monday. The index is down about 6.1% so far this year. 

The country’s stock market had a turnover of Rs. 339.8 million ($1.93 million), less than this year’s daily average of about Rs. 606.5 million so far. Last year’s daily average came in at Rs. 834 million. 

Foreign investors sold a net Rs. 25.8 million worth of shares, but they have been year-to-date net buyers worth Rs. 1.47 billion equities so far this year, index data showed. 

Shares of conglomerate John Keells Holdings PLC rose 1.8%, the country’s biggest listed lender Commercial Bank of Ceylon ended 1% firmer, and LOLC Holdings PLC climbed 1.5%. 

The currency ended 0.06% weaker at 176.00/10 per dollar, compared with Monday’s close of 175.90/176.00, as importer demand for the greenback outpaced the dollar selling by banks. 

The rupee is up 3.75% so far this year. 

Foreign investors bought a net Rs. 1.22 billion worth of government securities in the week ended 17 July, but the market has seen a year-to-date net foreign outflow to Rs. 18.46 billion, the Central Bank data showed.