Bourse ends steady near 8-month closing low

Reuters: Shares ended steady on Tuesday after hitting their lowest close in nearly eight months in the previous session, as gains in lenders offset losses in shares of diversified companies.

The Colombo Stock Index rose 0.05% to 6,360.36, up from its lowest close since 17 April hit on Monday. The index lost 0.6% last week in its fifth consecutive weekly drop, but is still up 2% so far this year. “Foreign buying pushed the turnover levels. It’s positive on the overall market that the foreigners are willing to pay a premium and get valued stocks,” said Hussain Gani, Deputy CEO at Softlogic Stockbrokers.

Turnover was Rs. 999.8 million ($ 6.53 million), more than this year’s daily average of Rs. 941 million.

Foreign investors bought a net Rs. 164.5 million worth of shares, extending the year-to-date net foreign inflow to Rs. 18.3 billion worth of equities.

Shares of biggest listed lender Commercial Bank of Ceylon Plc ended 2.9% higher, while conglomerate John Keells fell 0.8%.

Worries over a delay in local council polls and a lack of clarity over the Budget and two other key policy measures weighed on sentiment, analysts said.

The Election Commission said on 4 December that the council polls would be held before 17 February, amid concerns over political stability as coalition partners in President Maithripala Sirisena’s Government had decided to contest separately in the council polls.

Rupee ends flat in dull trade

Reuters: The rupee closed steady on Tuesday as year-end remittances and selling of the US currency by exporters outweighed importer dollar demand, dealers said.

The spot rupee ended at 153.00/10 per dollar, unchanged from Monday’s close.

“The trading was very thin and there was not much demand. The importer demand was offset by the remittances and exporter conversions,” a currency dealer said, asking not to be named.

The rupee has lost 2.3% so far this year, but currency dealers say dollar demand has slightly waned, lending support to the rupee.

The market has been waiting for more clarity over a foreign exchange management act introduced by the Government last month.

Foreign investors have net bought equities worth Rs. 18.53 billion ($ 121.06 million) this year as of Tuesday’s close. 

They had bought government securities worth a net Rs. 60.4 billion as of 6 December, official data showed.