Rupee nears Rs158 against US dollar, stocks down 0.18-pct
ECONOMYNEXT – The Sri Lanka rupee extended its record low closing at 157.70/90 rupees against the US dollar in the sport market, while gilt yields increased and stocks closed 0.18 percent lower Thursday.
The rupee’s decline against the US dollar is a result of importer demand caused by a money-printing central bank, analyst and dealers said. The dollar closed Wednesday at 157.40/50 rupees.
Gilt yields increased in the secondary market for government bonds, dealers said.
A five year bond maturing in 2023 closed at 10.15/25 percent in two-way quotes, up from 10.10/17 percent the previous day.
A ten-year bond maturing in 2028 closed at 10.35/45 percent, increasing from the previous day’s closing of 10.32/42 percent.
The Colombo All Share index fell 11.89 points to 6,521.74, and the S&P SL20 of more liquid stocks closed 0.17 percent lower, down 6.09 points to 3,678.26.
Market turnover was 390.2 million rupees, down 54 percent from the previous day.
LOLC (closing 4 rupees lower at 125 rupees), Distilleries (down 40 cents to 21.10 rupees) and Chevron Lubricants (down 4.30 rupees to 89.90 rupees) contributed to the benchmark index decline.
ialog gained 10 cents to 14.20 rupees and Lanka Hospital Corporation closed 2 rupees higher at 59 rupees.
Access Engineering gained 30 cents to 19.70 rupees and Tokyo Cement closed 1.10 rupees higher at 55.70 rupees.
Net foreign buying was 2.9 million rupees. Foreign buying was 315.9 million rupees the previous day.
Foreign buying in HNB was 8 million rupees, followed by 6 million rupees each in John Keells Holdings and Three Acre Farms, according to Three Acre Farms, according to First Capital Research.
HNB closed unchanged at 241 rupees. JKH gained 10 cents to 164.60 rupees and Three Acre Farms closed 10 cents higher at 164.60 rupees.
Foreign selling in Chevron Lubricants was 17 million rupees. (COLOMBO, 26 April, 2018)