Shares end at 11-week high; rupee edges down

Saturday, 26 October 2019 02:17 - - {{hitsCtrl.values.hits}}

Reuters: Banking and beverage stocks pushed shares to a near 11-week peak on Friday after one of the presidential front-runners released his policy manifesto, while the rupee closed a tad weaker.

Earlier in the day, former wartime Defence Chief Gotabaya Rajapaksa unveiled his policy statement, pledging a tax overhaul that would reduce value added tax to 8% from the current 15%, abolish a tax for professionals on their salary, and simplify many other taxes.

Rajapaksa faces a stiff challenge from Housing Minister Sajith Premadasa, who will announce his policy framework on 1 November. Analysts had said investors were waiting to see their views on tax, subsidies, and private businesses.

The benchmark stock index firmed 0.32% to 5,935.26, its highest close since 13 August, and extended a winning streak to a seventh straight session. The index posted a weekly gain of 1.2%, but is down 1.93% so far this year.

The rupee ended 0.08% weaker at 181.25/45 per dollar, compared with Thursday’s close of 181.10/25. The currency is up 0.74% so far this year.

Foreign investors were net sellers of riskier assets for the third time in six sessions.

They sold a net Rs. 26 million ($143,448.28) worth of shares, extending the year to date net foreign selling to Rs. 3.96 billion of equities, according to index data.

Equity market turnover was Rs. 638.7 million, less than this year’s daily average of about Rs. 665.6 million. Last year’s daily average was Rs. 834 million.

Meanwhile, foreign investors sold government securities on a net basis for the eighth time in nine weeks, selling a net Rs. 724.9 million worth of government securities in the week ended 16 October.

Total foreign outflows from government securities through 16 October stood at Rs. 55.6 billion, as per Central Bank data.

The Central Bank left its key rates unchanged on 11 October after loosening policy earlier this year, although growth is likely to remain subdued as the economy faces rising global risks.

Discover Kapruka, the leading online shopping platform in Sri Lanka, where you can conveniently send Gifts and Flowers to your loved ones for any event including Valentine ’s Day. Explore a wide range of popular Shopping Categories on Kapruka, including Toys, Groceries, Electronics, Birthday Cakes, Fruits, Chocolates, Flower Bouquets, Clothing, Watches, Lingerie, Gift Sets and Jewellery. Also if you’re interested in selling with Kapruka, Partner Central by Kapruka is the best solution to start with. Moreover, through Kapruka Global Shop, you can also enjoy the convenience of purchasing products from renowned platforms like Amazon and eBay and have them delivered to Sri Lanka.