Bourse rebounds to 2-week high led by JKH

Friday, 7 March 2014 04:22 - - {{hitsCtrl.values.hits}}

Reuters: Shares ended at their highest level in two weeks on Thursday led by top conglomerate John Keells Holdings PLC amid mild foreign inflows. The main stock index ended up 0.43%, or 25.50 points, at 5,961.93 points, its highest close since 19 February. Shares in John Keells rose 2.23% to Rs. 224.90. The day’s turnover was Rs. 716.1 million ($ 5.48 million), much below this year’s daily average of about Rs. 1.02 billion. Analysts said investors were cautious and waiting for direction as a tough resolution on Sri Lanka comes up for voting at the United Nation’s Human Rights Council later this month. Reacting to a report by the UN human rights chief last week, Sri Lanka questioned the independence of the human rights office of the UN on Wednesday, a day after the United States asked the UN to investigate human rights violations by the Government. Foreign investors bought a net Rs. 3.1 million worth of shares on Thursday, but they have been net sellers of Rs. 5.41 billion for the last 19 sessions as some offshore funds exited the market. The index has seen a net Rs. 4.02 billion of foreign outflows so far in 2014, after net inflows of Rs. 22.88 billion last year.

Rupee firmer on remittances, bank dollar sales

Reuters: The rupee ended firmer on Thursday due to inward remittances and dollar sales by banks in the absence of Central Bank intervention, but dealers expect the local currency to edge down in the latter part of March on seasonal demand for imports. The spot rupee ended at 130.55/58 per dollar, firmer from Wednesday’s close of 130.60/65. The currency has risen 0.37% in the last six sessions through Thursday, Thomson Reuters data showed. Dealers said the currency could strengthen in the absence of the Central Bank before it sees a gradual depreciation towards the end of March with seasonal importer dollar demand from the middle of the month. The market has been expecting downward pressure to continue ahead of festival import demand in April and due to equity outflows, though the depreciation is expected to be mild as the central bank has strong reserves to defend the rupee. However, since 27 February, the rupee has been on a gaining trend amid weak demand for dollars from importers, dealers said. The Central Bank said on Monday it bought a significant amount of dollars to keep the currency steady. Foreign investors have sold a net Rs. 5.41 billion worth of stocks in 19 straight sessions through Thursday, but they bought a net Rs. 709 million worth of Government securities in the week ended 26 February. The rupee has gained about 3.5% since it hit a record low of 135.20 on 28 August last year. It lost 2.5% in 2013.