Stock market hits more than 3-week closing high

Tuesday, 4 April 2017 00:00 - - {{hitsCtrl.values.hits}}

Reuters: Shares closed at their highest in more than three weeks on Monday, rising for a fifth straight session as foreign buying boosted sentiment while block deals pushed the day’s turnover, stockbrokers said.

The Colombo stock index ended 0.3% firmer at 6,080.01, its highest close since 10 March. The index rose 1.1% last week, posting its first weekly gain in six.

“Though retail investors are still on sidelines, the good thing is foreigners and high net worth investors are grabbing the opportunity and buying,” said Yohan Samarakkody, head of research at SC Securities.

Foreign investors net bought shares worth Rs. 67 million ($ 441,845) on Monday, raising the year-to-date net foreign inflow to Rs. 5.7 billion in equities. Turnover stood at Rs. 1 billion, well above this year’s daily average of Rs. 734.9 million. Shares of conglomerate John Keells Holdings Plc jumped 1.6%, while Commercial Leasing and Finance Plc rose 3.8%.

Aitken Spence and Company Plc ended 5% up and biggest listed lender Commercial Bank of Ceylon Plc climbed 0.8%.

Rupee ends firmer on exporter dollar sales

Reuters: The rupee ended slightly firmer in dull trade on Monday due to inward remittances and exporter dollar sales ahead of the festival season, dealers said.

Rupee forwards were active, with two-week forwards closing at 152.40/45 per dollar, compared with Friday’s close of 152.45/50.

“There was not much activity in the market. The seasonal importer demand has settled and most of the companies will be shut for the New Year by the end of this week,” 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 13-14 from April, dealers said.

The Central Bank on 27 March raised the spot rupee reference rate by 10 cents to 151.70. It had raised the reference rate by 25 cents on 20 March. The Central Bank raised interest rates for the first time in eight months on 24 March, saying tighter policy was a precaution against a build-up of inflationary pressures.

Analysts said the rate hike, a move that was also aimed at easing pressure on the rupee, could help stabilise the domestic currency that has been hurt by rising imports and outflows due to rupee bond sales by foreign investors.

Foreign investors net sold government securities worth Rs. 950 million ($ 6.26 million) in the week ended 29 March, and they have net sold Rs. 64.2 billion of such instruments so far this year.