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Friday, 7 April 2017 00:57 - - {{hitsCtrl.values.hits}}
Reuters: Shares rose for an eighth straight session on Thursday to their highest close in nearly four months led by blue chips such as Ceylon Tobacco Company Plc and John Keells Holdings Plc as continued foreign buying boosted sentiment.
The Colombo stock index ended 0.83% firmer at 6,250.04, its highest close since 19 December 2016. The index rose 1.1% last week, posting its first weekly gain in six. The index climbed 4.60% in the last eight sessions through Thursday.
Reuters: The rupee ended slightly weaker in dull trade on Thursday as it surrendered early gains due to importer dollar demand in the latter part of trade, outpacing inward remittances and exporter greenback sales ahead of the festival session, dealers said.
The Central Bank on Wednesday cut the spot rupee reference rate by 10 cents to 151.60, dealers said.
Rupee forwards were active, with two-week forwards closing at 152.60/70 per dollar, from Wednesday’s close of 152.50/65.
“Market was very light. There was not much activity. There was some demand (for dollar) in the latter part of the day,” said a currency dealer who did not wish to be named. The rupee has been under pressure due to dollar demand to meet increased seasonal imports ahead of the traditional new year that is celebrated on 13-14 April, dealers said.
The Central Bank raised interest rates by 25 basis points on 24 March, for the first time in eight months, saying tighter policy was a precaution against a build-up of inflationary pressures.
The rate hike was expected to help stabilise the rupee as rising imports and outflows due to rupee bond sales by foreign investors have exerted pressure on the currency, analysts said.
Foreign investors net sold government securities worth Rs. 950 million ($ 6.26 million) in the week ended 29 March. They have net sold Rs. 64.2 billion of such instruments so far this year.
“Market bounced back from its oversold position on foreign buying, Thanks to the blue chip counters. But whether this trend will continue or not is the question,” said Yohan Samarakkody, head of research, SC Securities.
“Everything depends on how foreign buyers react in the future.”
Foreign investors net bought shares worth Rs. 256.6 million ($ 1.69 million) on Thursday, raising the year-to-date net foreign inflow to Rs. 6.33 billion in equities. They have net bought 3.84 billion worth of equities in the past 13 sessions.
Turnover stood at Rs. 578.05 million, less than this year’s daily average of Rs. 745.1 million.
Shares of Ceylon Tobacco Company Plc gained 3.44%, conglomerate John Keells Holdings Plc climbed 1.37%, while Colombo Cold Stores Plc rose 0.84%.
