Bourse slips from over 2-week high

Tuesday, 11 March 2014 01:02 - - {{hitsCtrl.values.hits}}

Reuters: Shares slipped on Monday from a more than two-week high as turnover was thin as most investors stayed away ahead of voting on a resolution at the United Nations over its human rights record later this month. The main stock index ended 0.14%, or 8.45 points lower at 5,957.61. It had climbed to a two-week high closing in the previous session. Shares of top conglomerate John Keells Holdings PLC fell 1.36% to Rs. 227.

The day’s turnover was Rs. 304.3 million ($ 2.3 million), well below this year’s daily average of about Rs. 984.4 million. The market witnessed a daily average turnover of Rs. 360.9 million in the last six sessions, which analysts attributed to cautious investors opting to be on the sidelines ahead of a resolution on Sri Lanka coming up for voting at the United Nation’s Human Rights Council later this month. Reacting to a report by the UN Human Rights Chief, Sri Lanka last week questioned the independence of the human rights office of the UN after the United States asked it to investigate violations by the Sri Lankan Government. Foreign investors bought a net Rs. 32.6 million worth of shares on Monday, but they have been net sellers of Rs. 5.36 billion for the last 21 sessions as some offshore funds exited the market. The index has seen a net Rs. 4 billion of foreign outflows so far in 2014, after net inflows of Rs. 22.88 billion last year.

Rupee steady for second day

Reuters: The rupee ended steady on Monday as dollar inflows from inward remittances and bank sales offset importer dollar demand, but seasonal demand for imports is expected to weigh on the local currency, dealers said. The spot rupee ended unchanged at 130.55/57 per dollar. The currency has risen 0.37% in the last eight sessions through Monday, Thomson Reuters data showed. The rupee has been on a rising trend since 27 February amid weak demand for dollars from importers, dealers said. Economists and dealers have said the rupee has unexpectedly appreciated in the last two weeks despite its historic tendency of falling in March and April due to festive import demand. The market, however, expects downward pressure due to high imports for the traditional new year in mid-April and outflows from equities, though the depreciation is expected to be mild as the Central Bank has strong reserves to defend the rupee. Foreign investors sold a net Rs. 5.36 billion worth of stocks in 21 straight sessions through Monday, and they sold a net Rs. 4.57 billion worth of Government securities for the week ended 5 March. 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.