Home / Front Page/ Rupee falls on uncertainty amid foreign outflow; stocks at near 2-week low

Rupee falls on uncertainty amid foreign outflow; stocks at near 2-week low

Comments / {{hitsCtrl.values.hits}} Views / Friday, 9 November 2018 00:00

Reuters:  The rupee ended weaker on Thursday as outflows from Government securities and stocks due to political uncertainty raised dollar demand. 

Stocks fell for the fourth straight session, hitting its near two-week closing low and moving further away from their near two-month closing high hit last week, as the political crisis dented sentiment after the Speaker of Parliament said on Monday he would not recognise President Maithripala Sirisena’s sacking of Ranil Wickremesinghe as Prime Minister and appointment of Mahinda Rajapaksa in his place. 

Sri Lanka’s Parliamentary Speaker has called the President’s sacking of the Prime Minister to bring a former leader back to power a non-violent coup d’état. 

The rupee ended at 175.05/20 per dollar on Thursday, compared with the previous close of 174.80/175.10. The rupee has weakened more than 1% since the political crisis began on 26 October.

The rupee hit a record low of 175.65 per dollar on 1 November. 

The rupee weakened 3.7% in October after a 4.7% drop in September against the dollar. It has dropped 13.9% this year. Foreigners sold a net 405.8 million worth stocks on Thursday. They have offloaded equities worth Rs. 7.2 billion since the political crisis started on 26 October. 

The bond market saw an outflow of about Rs. 11 billion between 25 and 31 October, Central Bank data showed. This year, the island nation has seen Rs. 16.6 billion in outflows from stocks and Rs. 100.8 billion from Government securities, bourse and central bank data respectively showed. 

The Colombo stock index fell 0.95% to 5,930.59, its lowest close since 26 October. It hit a near two-month high on 1 November. The bourse rose 4.5% last week due to heavy retail investor participation. It has slipped 6.9% so far this year. 

Stock market turnover was Rs. 1.1 billion ($ 6.30 million) on Thursday, more than this year’s daily average of Rs. 818.4 million. 

Shares of Hatton National Bank PLC fell 3.5%, while, conglomerate John Keells Holdings PLC ended 1.7% down, the country’s biggest listed lender, Commercial Bank of Ceylon PLC, declined 1.9% and Sri Lanka Telecom PLC lost 5.2%.

Share This Article


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.


Today's Columnists

Untruth is the crisis

Tuesday, 13 November 2018

Political language, said George Orwell, is designed to make lies sound truthful, murder respectable, and to give an appearance of solidity to pure wind. Dr. Sarath Amunugama is the subject of this essay. In addition to his current incarnation of a p

Rise, Sri Lankans – our country needs you now!

Tuesday, 13 November 2018

I am sick, tired and bloody fed up of reading and listening to pessimistic tales of woe on the unprecedented crisis we and our country are facing at this dark moment in time. I am also fed up to the back teeth with reading and listening to lamentatio

Ranil abused and subverted parliamentary democracy

Tuesday, 13 November 2018

TIME: What was the immediate reason for calling an election? President Kumaratunga: I was forced into it by a total breakdown of cohabitation in Government. The Prime Minister (Ranil Wickremesinghe) was determined to harass me and chase me out. He ha

The Bench must ensure that the judges will continue to be trusted

Monday, 12 November 2018

In the backdrop of the recent developments and the strong arguments that have been presented against the dissolution of Parliament saying the President has no constitutional power to do so, before four and a half years into a Parliamentary term, as s

Columnists More