CSE gains to 1 1/2-week closing high; rupee strengthens

Tuesday, 2 July 2019 01:38 - - {{hitsCtrl.values.hits}}

REUTERS: Shares ended steady on Monday, hitting their highest close in more than a week, while the rupee edged up on dollar sales as month-end inward remittances surpassed greenback demand from importer, market sources said.

The benchmark stock index ended up 0.08% at 5,376.67, its highest close since 19 June. The index rose 0.16% last week and posted its first monthly gain for the year in June, rising 1.15%. However, the bourse is down 11.16% so far this year.

Foreigners sold on a net basis for 15 sessions in 16, the bourse data showed.

Monday’s stock market turnover was Rs. 252.6 million ($ 1.43 million), well below this year’s daily average of about Rs. 542.7 million.

Last year’s daily average was Rs. 834 million.

Foreign investors sold a net Rs. 162.9 million worth of shares on Monday, extending the year-to-date net foreign outflows to Rs. 6.5 billion.

The currency edged up at 176.25/35 per dollar, compared with Friday’s close of 176.40/50, market sources said. The rupee rose 0.17% last week and is up 3.6% so far this year.

The island nation raised $ 2 billion via five-year and 10-year sovereign bond sales last week, tapping global capital markets for the second time in three months.

Analysts expect the rupee to weaken further as money flows out of stocks and government securities. The rupee dropped 16% in 2018 and was one of the worst-performing currencies in Asia.

Foreign investors bought a net Rs. 2.26 billion worth of government securities in the week ended 26 June, but the island nation’s net foreign outflow was at Rs. 18.4 billion so far this year, Central Bank data showed.