Shares up for sixth straight session, rupee gains

Friday, 25 October 2019 00:00 - - {{hitsCtrl.values.hits}}

Reuters: Shares and the rupee gained on Thursday, with investors waiting for policy manifestos of the two front-runners in next month's Presidential Poll.

Former wartime Defence Chief Gotabaya Rajapaksa and Housing Minister Sajith Premadasa will announce their policy frameworks on Friday 1 November. Analysts had said investors were waiting to see their views on tax, subsidies and private businesses.

Shares edged up for a sixth straight session and closed at their highest level in ten weeks, buoyed by diversified and telecom stocks.

The benchmark stock index rose 0.47% to 5,916.28, the highest close since 15 August. The index has fallen 2.25% so far this year.

The rupee ended 0.17% firmer at 181.10/25 per dollar, compared with Wednesday's close of 181.40/50. The currency is up 0.82% so far this year.

Foreign investors were net sellers of riskier assets for the second time in five sessions.

They sold a net Rs. 223.5 million ($1.23 million) worth of shares, extending the year to date net foreign selling to Rs. 3.94 billion of equities, according to index data.

Equity market turnover was Rs. 731.3 million, more than this year's daily average of about Rs. 665.8 million. Last year's daily average was Rs. 834.0 million.

Meanwhile, foreign investors sold government securities on a net basis for the eighth time in nine weeks, selling a net Rs. 724.9 million worth of government securities in the week ended 16 October.

Total foreign outflows from government securities through 16 October stood at Rs. 55.6 billion, as per Central Bank data.

Sri Lanka's Central Bank left its key rates unchanged on 11 October, after loosening policy earlier this year, although growth is likely to remain subdued as the economy faces rising global risks.