Sri Lanka rupee weakens, stocks end 0.11-pct lower
Aug 20, 2018 17:12 PM GMT+0530 | 0 Comment(s)
ECONOMYNEXT - The Sri Lanka rupee closed weaker at 160.50/60 rupees against the US dollar Monday as stocks closed 0.11 percent lower on selling in John Keells Holdings and banking stocks, brokers and dealers said.
The rupee reached an intraday low of 160.60 rupees against the greenback in the spot market on importer demand, dealers said.
The US dollar closed Friday at 160.50/58 rupees.
The currency is under pressure due to importer demand driven by excess liquidity in money markets, while foreigners were seen selling government securities and equities, dealers said.
Overnight interbank liquidity fell by 4.89 billion rupees from a day earlier on Monday to 33.51 billion rupees. Excess interbank liquidity was 10.29 billion on 25 July.
Foreign investors sold 817.8 million rupees worth of government securities last week and net foreign selling in equities was 679.7 million rupees.
Gilt yields edged higher in the secondary market for government bonds.
A five-year bond maturing in 2023 closed at 9.96/10.05 percent in two-way quotes, up from 9.91/10.00 percent the previous close.
An eight-year bond maturing in 2026 closed at 10.15/25 percent, up from 10.10/25 percent the previous day.
A ten-year bond closed at 10.25/40 percent unchanged from Friday's close of 10.25/40 percent.
In equities, Colombo's All Share index closed 0.11 percent lower, down 6.87 points to 6,044.23, and the S&P SL20 of more liquid stocks closed 0.33 percent lower, down 10.64 points to 3,227.61.
Market turnover was 193.22 million rupees, down from Friday's turnover of 569.36 million rupees.
Dialog (down 30 cents to 13.90 rupees) and Commercial Bank (down 1 rupee to 122.10 rupees) contributed to the benchmark index decline on a day where 89 stocks declined against 36 that gained.
John Keells Holdings closed 10 cents lower at 137.90 rupees and Chevron Lubricants Lanka was down 1.40 rupees to 87.10 rupees.
Sampath Bank closed 60 cents lower at 278 rupees and DFCC was down 2 rupees to 95 rupees.
HNB gained 1.90 rupees to 222 rupees.
Net foreign selling was 11.7 million rupees, compared to selling of 229 million rupees on Friday.
Foreign selling in John Keells Holdings was 34 million rupees. Foreign buying in Dialog was 17 million rupees, according to Asia Securities. (COLOMBO, 20 August 2018)