Home / Financial Services/ Stock market rebounds; rupee firmer

Stock market rebounds; rupee firmer


Comments / {{hitsCtrl.values.hits}} Views / Thursday, 28 November 2019 03:10


Reuters: Shares ended higher on Wednesday, helped by gains in beverage and banking shares, while the rupee ended firmer on hopes of tax cuts by the new Government.

After the market closed, Cabinet Spokesman Bandula Gunawardena said the Government has decided to reduce value-added tax to 8% from 15% with effect from 1 December.  Sri Lanka’s Central Bank is likely to leave its key interest rates on hold at a policy review on Friday, a Reuters poll indicated, while it waits for the new Government’s economic policies after the election of a President on 16 November. 

The benchmark stock index <.CSE> ended up 0.39% at 6,118.87, further moving away from its lowest close since 15 November hit on Monday. The bourse gained 1.6% last week, and is up 1.10% for the year.

Analysts said investors are awaiting for some policy directions from the country’s newly-elected President, Gotabaya Rajapaksa.    

The rupee ended 0.39% firmer at 180.80/181.10 per dollar, compared to Tuesday’s close of 181.50/90, Refinitiv data showed. It is up 0.6% so far this year.

Foreign investors were net sellers for 22 sessions in 24.

They sold a net Rs. 176.7 million ($981,667) worth of shares on Wednesday, extending the net selling so far this year to Rs. 9.45 billion worth of equities, according to index data.

Equity market turnover was Rs. 1.3 billion, more than this year’s daily average of about Rs. 711.6 million. Last year’s daily average was Rs. 834 million.

Meanwhile, foreign investors were net buyers of government securities on a net basis for the fifth straight week, purchasing a net Rs. 0.21 million worth of government securities in the week ended 20 November. Total foreign outflows from government securities through 20 November stood at Rs. 48 billion, Central Bank data said.


Share This Article

Facebook Twitter


DISCLAIMER:

1. All comments will be moderated by the Daily FT Web Editor.

2. Comments that are abusive, obscene, incendiary, defamatory or irrelevant will not be published.

3. We may remove hyperlinks within comments.

4. Kindly use a genuine email ID and provide your name.

5. Spamming the comments section under different user names may result in being blacklisted.

COMMENTS

Today's Columnists

Stock market, Mark Mobius and State entities

Wednesday, 29 January 2020

The expert of emerging capital markets, Mark Mobius was in Sri Lanka recently. A key recommendation he made for the development of the local capital market was to list certain State entities in the Colombo stock market. The local stock brokerages se


Autocatalytic descent from plural democracy to supremacist authoritarianism

Wednesday, 29 January 2020

In a few days, Sri Lanka will celebrate its 72nd year of independence from colonialism. But behind the pomp and pageant of that celebration is a sad reality of an autocatalytic process – a small initial event triggering a chain reaction that evolve


Trump destroying brand USA: Implications for Sri Lanka

Wednesday, 29 January 2020

There is an old adage that ‘politics and tourism’ has a positive correlation. Many have tried to disprove this aspect but the relationship is coming out very strongly, the latest case study to the world being in the United States.


Freedom! Freedom! Where art thou?

Wednesday, 29 January 2020

Freedom: who could object? Yet this word is now used to justify a thousand forms of exploitation. In the name of freedom – the freedom of the powerful to exploit the weak, the rich to exploit the poor. The definition of freedom is, the condition of


Columnists More