Saturday December 15, 2018

Sri Lanka rupee recovers from intra-day low on exporter dollar sales; stocks close 0.76-pct lower

Jun 20, 2018 17:43 PM GMT+0530 | 0 Comment(s)

ECONOMYNEXT - The Sri Lanka rupee closed marginally weaker against the US dollar Wednesday after export conversions clawed-back the currency from a low of 160.10/20 rupees in early trading, while gilt yields edged up and stocks fell 0.76 percent on selling in banking stocks, brokers and dealers said.

The rupee closed marginally weaker at 159.95/160.10 rupees against the US dollar in the spot market on import demand.

Earlier in the day, the rupee fell to 160.10/20 rupees against the greenback before recovering on export conversions, dealers said.

An actual dollar sale took place at 160.16 rupees, dealers said.

The US dollar closed at 159.96/160.05 rupees on Tuesday.

Interbank markets were short by 12.95 billion rupees down from 19.4 billion rupees the previous day. Short money markets help stabilise the rupee.

The Central Bank injected 18 billion in new money through an overnight reverse repo auction at 8.48 percent, below the Central Bank's overnight lending window.

Banks which were short borrowed 7 rupees in new money from the Central Bank's overnight window, and banks with excess liquidity deposited 12.2 billion rupees in the central bank.

Gilt yields edged up marginally in the secondary Treasury bonds market.

A five-year bond maturing in 2023 closed at 10.40/47 percent in two-way quotes, marginally narrower from the previous day's closing of 10.43/45 percent.

A ten-year bond maturing in 2028 closed at 10.66/76 percent, up from 10.68/72 percent the previous day

In equities, the Colombo All Share index fell 0.76 percent, down 47.82 points to 6,217.91, and the S&P SL20 index of more liquid stocks closed 1.23 percent lower, down sharply by 42.79 points to 3,430.73.

Market turnover was 341.5 million rupees, down 46 percent from the previous day, with 105 stocks declining against 37 that gained.

Net foreign selling was 31.5 million rupees, compared to buying of 76.2 million rupees a day earlier.

Foreign selling in John Keells Holdings was 63 million rupees, followed by 16 million rupees in Commercial Bank, according to Asia Securities.

John Keells Holdings closed unchanged at 150.10 rupees and Commercial Bank fell 1.40 rupees to 123.90 rupees.

Distilleries (down 1.10 rupees to 20.40 rupees) and banking stocks HNB (down 4.90 rupees to 230.10 rupees), Sampath (down 6.60 rupees to 304.70 rupees) and NDB (down 8.20 rupees to 124.50 rupees) contributed to the benchmark index decline.

Access Engineering fell 20 cents to a five year low of 15.80 rupees.

There was foreign buying in Dialog (unchanged at 14.50 rupees) for 23 million rupees and Sampath Bank for 19 million rupees.

There were no crossings, or off-market negotiated trades. (COLOMBO, 20 June 2018)


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