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Reuters: Sri Lankan shares fell on Monday in dull trade to close at their lowest in two weeks, as investors booked profits in heavyweights such as John Keells Holdings Plc and Commercial Bank Plc while floods and landslides that hit the island nation weighed on sentiment.
Sri Lankan authorities on Monday warned of more rains and landslides as a cyclone grew in the Bay of Bengal, while floods killed 164 people following the heaviest rainfall in 14 years.
The Colombo stock index ended 0.27% weaker at 6,679.46, at its lowest close since 15 May.
The bourse fell 0.47% last week recording its first weekly fall in nine weeks.
Turnover on Monday stood at Rs. 270.6 million ($1.8 million), well below this year’s daily average of Rs. 895.9 million. Foreign investors bought shares worth Rs. 57.1 million on a net basis, extending the year-to-date net foreign inflow to Rs. 19.46 billion worth of equities.
“Profit-taking that started last week is continuing. The market is coming down on low volumes,” said Dimantha Mathew, head of research, First Capital Holdings PLC.
“The floods might impact the earnings of companies, though there are no news of any of the factories of listed companies affected from floods. Investors are waiting to see the real impact of the floods.”
Shares in conglomerate John Keells Holdings Plc and Nestle Lanka Plc fell 0.9% each, while biggest listed lender Commercial Bank of Ceylon Plc fell 1.2%.
Reuters - The Sri Lankan rupee recovered from early falls to close little changed on Monday with dollar selling by a state bank offsetting early importer demand for the U.S. currency, traders said.
However, the worst floods in 14 years that have left 177 people dead weighed on the currency, they added.
Authorities warned of more rains and landslides on Monday as a cyclone formed in the Bay of Bengal.
The floods would have an adverse impact on agricultural exports, putting pressure on the rupee, said a currency dealer asking not to be named.
“Floods could also pressure the overall GDP and government budget deficit with high infrastructure spending,” he said.
Rupee forwards were active on Monday, with spot-next forwards closing at 152.80/95 per dollar, compared with Friday’s close of 152.85/95.
A state bank sold dollars at 152.90 per dollar, dealers said.
Dealers said the rupee has been under pressure after the central bank governor on May 18 said the bank would allow gradual depreciation of the currency.
The spot rupee did not trade on Monday.
The central bank fixed the spot rupee reference rate at 152.50 on May 5.
Foreign investors bought a net Rs. 14.6 billion ($95.61 million) worth of government securities in the two weeks ended May 24. They have sold net Rs. 42.1 billion worth securities so far this year.
