Sunday Dec 15, 2024
Sunday Dec 15, 2024
Tuesday, 25 April 2017 00:07 - - {{hitsCtrl.values.hits}}
Reuters: shares fell on profit-taking on Monday after reaching a six-month closing high and gaining 9.4% in the previous 16 session as foreign investors bought risky assets.
The Colombo stock index ended 0.45% weaker at 6,505.95, from its highest close since 11 October hit in the previous session. It has climbed 9.4% in the 16 sessions through Friday, having risen for 15 sessions in that period.
The index added 2.1% last week, marking its fourth week of gains.
“This is a typical settling in market. Foreign focus has slightly changed...but foreign buying is continuing,” said Hussain Gani, deputy CEO of Softlogic Stockbrokers.
Foreign investors have been net buyers in the last 22 sessions, acquiring equities worth a net Rs. 123.3 million ($ 811,184). The year-to-date net foreign inflow is Rs. 14.4 billion.
Turnover was moderate on Monday at Rs. 530.3 million, less than of this year’s daily average of Rs. 873.1 million.
Market heavyweight John Keells Holdings lost 0.9%, while top private lender Commercial Bank of Ceylon fell 1.3%, dragging the overall index.
Reuters - The Sri Lankan rupee closed flat on Monday as late dollar sales by foreign banks offset importer dollar demand, while the market awaited positive news on an International Monetary Fund loan and a sovereign bond sale, dealers said.
The rupee forwards were active, with two-week forwards closing at 153.10/20 per dollar, hardly changed from Friday’s close of 153.10/25.
It fell to 153.40/45 in early trade.
“We expect the rupee to be in this range during this week, and to appreciate once the IMF announces its third tranche and the inflows from the government’s sovereign bond issue,” said one currency dealer.
The IMF is yet to approve the third tranche of a $1.5-billion loan, and the market expects the approval to help boost sentiment. Finance Minister Ravi Karunanayake met IMF officials in Washington last week.
Government officials have said authorities would go for an up to $1.5 billion sovereign bond sale “soon”.
Sri Lanka has seen a surge in foreign inflows into equities and government securities since early this month.
Foreign investors bought equities worth a net Rs. 11.9 billion in the 22 consecutive sessions through Monday.
They also net bought government securities worth Rs. 4.17 rupees in the week ended April 19. However, they have been net sellers to the tune of Rs. 58 billion worth of government bonds so far this year.
