Wednesday September 19, 2018

Sri Lanka rupee weakens, stocks fall 0.15-pct

Jun 06, 2018 17:48 PM GMT+0530 | 0 Comment(s)

ECONOMYNEXT - The Sri Lanka rupee weakened against the US dollar on Wednesday and stocks closed 0.15 percent lower on Wednesday amidst foreign buying interest in John Keells Holdings.

The rupee weakened slightly to 158.70/80 rupees against the US dollar in the spot market, dealers said. The US dollar closed Tuesday at 158.60/70 rupees.

On May 30, the central bank sold down 15 billion rupees of its treasury bill holdings which took out cash from the system.

Money markets continued to be short at 13.3 billion rupees on Wednesday, down from 15.82 billion rupees the previous day.

The Central Bank injected 10 billion rupees via a reverse repo auction on Wednesday to meet the liquidity shortfall.

On Wednesday, well-managed banks with excess liquidity deposited 11.4 billion rupees in the central bank's excess liquidity window, while banks that were short had to borrow 14.7 billion rupees from the central bank reverse repo window at 8.50 percent.

In gilts, a five-year bond maturing in 2023 closed at 10.38/42 percent in two way quotes, down from 10.40/43 percent the previous day.

A ten-year bond maturing in 2028 closed higher at 10.60/70 percent, up from 10.58/65 percent the previous close.

The Colombo All Share index shed 9.60 points closing 0.15 percent lower at 6,399.91, and the S&P SL20 index of more liquid stocks closed 0.40 percent lower, down 14.22 points to 3,578.44.

Market turnover was 510.1 million rupees, down 25 percent from the previous day.

John Keells Holdings (closing 1 rupee lower at 158 rupees), Hemas Holdings (down 1.90 rupees to 118.10 rupees) and BRAC Lanka Finance (down 4.50 rupees to 42 rupees) weighed down the benchmark index.

There was one crossing, or off-market negotiated trade, in John Keells Holdings for 158.4 million rupees which accounted for 31 percent of market turnover.

Net foreign buying was 188.4 million rupees, up from 183 million rupees the previous day.

Foreign buying in John Keells Holdings was 178 million rupees, according to Asia Securities. (COLOMBO, 06 June, 2018)


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