Colombo Bourse stays down

Reuters: Sri Lankan shares ended slightly weaker on Friday with banks trading down for a second consecutive day after Standard & Poor’s ranked the nation’s lenders a “very high risk.”

The Colombo Stock Exchange’s main index closed 0.06%, or 2.92 points weaker at 5,039.15, after moving within a range of 5,018-5,068 points. It had gained 5.6% in the six sessions through Wednesday.

The Central Bank has dismissed S&P’s assessment, saying it is incorrect and contradictory.

The finance sector index fell 0.62% to its lowest since June 14, with top lender Commercial Bank of Ceylon losing 0.4% to 100.50 rupees and development lender DFCC Bank down 1.78% to Rs.110.10 rupees.

Market heavyweight and top conglomerate John Keells Holdings PLC fell 1.07% to 193.90 rupees a share.

Turnover was 674 million Sri Lanka rupees ($5.08 million), below the daily average of around 923 million rupees this year.

Foreign investors were net buyers of 77.3 million rupees worth of shares on Friday extending the net foreign inflow so far this year to 22.69 billion rupees.

The rupee fell for a fifth straight session, edging down to 132.80/133.00 against the dollar, from Thursday’s close of 132.80/90.

Dealers said the rupee fell to 133.40 on Friday due to importer dollar demand before recovering on exporter dollar sales. It hit a record low of 133.60 on June 12.

Last week, Treasury Secretary P.B. Jayasundera told Reuters the rupee had hit its low and would stabilise around 125 per dollar in the medium term.