Sri Lanka rupee falls to new low, stocks down 0.49-pct
Sep 14, 2018 17:58 PM GMT+0530 | 0 Comment(s)
ECONOMYNEXT - The Sri Lanka rupee fell sharply against the US dollar on Friday falling to a new low of 163.60/80 rupees on importer demand fuelled by the Central Bank injecting over 48 billion rupees to money markets, dealers said.
The Central Bank injected about 48.3 billion rupees through term reverse repo auctions since 11 September. The rupee closed Thursday at 162.85/163.00 rupees against the greenback.
Overnight market excess liquidity fell by 3.22 billion rupees, to 13.08 billion rupees on Friday. The Central Bank had also drawn down its government securities holdings by 7.48 billion rupees to 22.62 billion rupees.
Gilt yields edged higher in the secondary bond market for government with foreign investors selling 2.5 billion rupees worth of bonds in the week to 12 September, dealer said.
A five-year bond maturing in 2023 closed at 10.25/34 percent on Friday, up from 10.22/27 percent the previous day.
A ten-year bond maturing in 2028 closed at 10.50/70 percent, up from the previous closing of 10.50/65 percent.
In equities, the Colombo All Share index closed 0.49 percent lower, down 29.42 points to 6,031.26, and the S&P SL20 of more liquid stocks closed 0.87 percent lower, down 27.65 points to 3,139.77.
Market turnover was 786.1 million rupees on 83 stocks declining during the day against 38 that gained.
John Keells Holdings (down 1.40 rupees to 133.70 rupees), Dialog (down 20 cents to 12.30 rupees) and Sampath Bank (down 4.90 rupees to 265 rupees) contributed to the benchmark index decline.
Commercial Bank closed 1.20 rupees lower at 119.80 rupees.
Net foreign selling was 340.7 million rupees. Foreign selling in John Keells Holdings was 343 million rupees, according to Asia Securities.
Crossings, or off-market negotiated trades, amounted to 405 million rupees, accounting for 52 percent of market turnover.
There were four crossings in John Keells Holdings for 270 million rupees, and one each in Sampath Bank for 40 million rupees, Commercial Bank 58 million rupees and Ceylon Tobacco 37.6 million rupees.
Ceylon Tobacco closed unchanged at 1,250 rupees. (COLOMBO, 14 September 2018)