Bourse ends at close at 1-week high on foreign buying

Friday, 29 September 2017 00:00 - - {{hitsCtrl.values.hits}}

Reuters: Shares closed at a one-week high on Thursday, as investors bought banking stocks and continued foreign buying in the market underpinned positive sentiment, brokers said.

The Colombo stock index ended 0.2% up at 6,419.47, its highest close since 21 September.

Foreign investors bought a net Rs. 110.5 million ($ 721,986) worth of shares on Thursday extending the year-to-date net foreign inflow to Rs. 17.8 billion worth of equities.

Turnover stood at Rs. 801 million, compared with this year’s daily average of about Rs. 915.5 million.

“The market is up on continued foreign buying with healthy turnover levels,” said Hussain Gani, deputy CEO of Softlogic Stockbrokers, adding local retail investors also bought into the market.

Shares of the biggest listed lender Commercial Bank of Ceylon Plc ended 0.6% higher, while Lion Brewery Plc rose 6.6%, and Melstacorp Ltd. ended 1.4% firmer.

On Tuesday, the Sri Lankan Central Bank held its key rates steady, saying past steps were keeping inflation and credit growth under control, as policymakers focus on supporting an economy hit by extreme weather.

Rupee edges down as banks buy dollars to cover import payments

Reuters: The rupee weakened on Thursday, as demand for dollars from importers to pay for their purchases outweighed conversions of the greenback into local currency by exporters, dealers said.

The spot rupee, which traded at 153.19 per dollar earlier in the day, recovered to close at 153.10/20, but weaker from Wednesday’s closing level of 153.00/10.

“The importer demand was there throughout the day. Both state and foreign banks bought dollars to cover some import bills,” said a currency dealer who did not wish to be named.

The rupee has been under pressure since January after the Central Bank stopped defending the currency and started buying dollars to build up the country’s depleted foreign currency reserves.

The island nation has seen Rs. 17.8 billion ($ 116.30 million) of net inflows into equities this year as of Thursday’s close, and Rs. 17.3 billion worth inflows into government securities as of 20 September this year, official data showed.