Bourse dips to 3-month closing low; budget, corporate earnings eyed

Reuters: Shares fell to a three-month closing low on Wednesday, led by diversified companies as investors waited for clues from the Government budget and September-quarter corporate results, brokers said.

The main stock index ended 0.54%, or 38.13 points, weaker at 7,040.32, its lowest closing since 14 July.

“There was selling pressure across the board today, especially on the blue-chip counters,” said First Capital Equities Ltd. Research Manager Dimantha Mathew. Analysts said investors were cautious ahead of Prime Minister Ranil Wickremesinghe’s policy statement next month outlining his Government’s economic priorities.

Turnover stood at Rs. 725.9 million ($ 5.15 million), compared with this year’s daily average of Rs. 1.11 billion.

Foreign investors, who have been net sellers of Rs. 2.98 billion worth of equities so far this year, bought a net Rs. 106.9 million worth of shares on Wednesday.

Shares of Carson Cumberbatch Plc fell 4.36%, while Aitken Spence Hotel Holdings Plc dropped 7% and Bukit Darah Plc declined 2.52%.

Rupee falls on importer dollar demand

Reuters: The rupee ended weaker on Wednesday due to demand for the greenback from importers and weak exporter dollar sales, dealers said.

Dealers said dollar sales by a bank in the latter part of the day prevented a sharp fall in the local currency.

The rupee, which hit a low of 141.00 per dollar during the day, ended at 140.85/90 per dollar. The currency ended at 140.55/60 per dollar on Tuesday.

“The demand (for dollar) is building up slowly. We have seen this week again the demand is picking up, maybe the seasonal import demand,” said a currency dealer who asked not to be named.

The rupee hit a record low of 141.40 per dollar on 28 September, but recovered slightly after a State-run bank sold dollars.

Dealers said importer dollar demand has fallen following Government measures to discourage vehicle imports but the seasonal imports are expected to pick up.