CSE recovers from 2-week low on block trade; rupee slips

Thursday, 27 June 2019 01:44 - - {{hitsCtrl.values.hits}}

REUTERS: Shares snapped a four-session losing streak to end tad firmer on Wednesday on block trading of select shares, bouncing back from a two-week low hit on the previous day, while the rupee fell on importer dollar demand, market sources said.

The benchmark stock index ended 0.11% higher at 5,348.57, recovering from its lowest closing level since 11 June, hit on Tuesday. It fell 0.38% last week and is down 11.63% so far this year.

Foreigners sold on a net basis for the 12th session out of the last 13, the bourse data showed.

The currency edged down at 176.50/60 per dollar, compared with Tuesday's close of 176.45/55, market sources said. The rupee is up 3.45% for the year.

The island nation raised $ 2 billion via five-year and 10-year sovereign bond sales, the Central Bank said on Tuesday, tapping global capital markets for the second time in three months.

Analysts expect the rupee to weaken further as money flows out of stocks and government securities. The rupee dropped 16% in 2018 and was one of the worst-performing currencies in Asia.

Foreign investors bought a net Rs. 879.6 million worth of government securities in the week ended 19 June, but the island nation's net foreign outflow was at Rs. 20.7 billion so far this year, Central Bank data showed.

Wednesday's stock market turnover was Rs. 128.1 million ($ 726,190.48), well below this year's daily average of about Rs. 549.1 million. Last year's daily average was Rs. 834 million.

Foreign investors sold a net Rs. 8.2 million worth of shares on Wednesday, extending the year-to-date net foreign outflow to Rs. 6.24 billion.