CSE slips from 11-week closing high; rupee edges higher

Tuesday, 9 July 2019 00:00 - - {{hitsCtrl.values.hits}}

REUTERS: Sri Lankan shares inched lower on Monday, retreating after six straight sessions of gains to a near 11-week closing high, as investors sold diversified stocks such as John Keells Holdings Plc.

The bourse hit its highest close since April 18 on Friday, buoyed by the government's decision to launch a $2.2 billion Japan-funded Light Railway Transit (LRT) project and some other stalled infrastructure projects, brokers said.

The benchmark stock index ended 0.2% down at 5,504.60.

The index rose 2.67% last week, notching its second consecutive weekly gain. However, the bourse is down 8.87% so far this year.

Shares in conglomerate John Keells Holdings fell 1.8%, while Ceylon Tobacco Company Plc ended 1.5% weaker and Commercial bank of Ceylon Plc, the country's biggest listed lender, lost 1.8%. Stock market turnover was 136.3 million rupees ($773,992), well below this year's daily average of about 542.2 million rupees. Last year's daily average came in at 834 million rupees.

Foreigners bought on a net basis for the second time in 13 sessions, purchasing a net 15.1 million rupees worth of shares, but the bourse has seen net foreign outflows of 6.91 billion rupees so far this year, the index data showed

Meanwhile, the currency closed slightly firmer at 176.05/15 per dollar, compared with Friday's close of 176.10/15, as exporter dollar sales surpassed importer greenback demand. The rupee rose 0.17% last week, and is up 3.72% so far this year. The rupee dropped 16% in 2018 and was one of the worst-performing currencies in Asia.

The island nation raised $2 billion via 5-year and 10-year sovereign bond sales last month, tapping global capital markets for the second time in three months.

Foreign investors sold a net 3.93 billion rupees worth of government securities in the week ended July 3, extending the year-to-date net foreign outflow to 22.4 billion rupees, the central bank data showed.

The central bank cut its key interest rates on May 31 to support a faltering economy as overall business and consumer confidence slumped following deadly bomb attacks in April.