Rupee gains as exporters sell dollars

Reuters - The Sri Lankan rupee ended firmer on Thursday as dollar selling by exporters surpassed mild demand for the greenback from importers, dealers said.

The spot rupee ended at 152.65/75 per dollar, compared with Wednesday’s close of 152.70/85.

“There was some exporter (dollar) selling and importer demand was not there,” said a currency dealer requesting anonymity. The rupee has been under pressure since January after the central bank stopped defending the currency and started buying dollars to build up the country’s depleted foreign currency reserves.

The island nation saw 17.7 billion rupees ($116 million) of net inflows into equities up to Wednesday’s close, and 9.4 billion rupees worth inflows into government securities as of Sept. 13, official data showed.

Bourse closes flat

Reuters: Shares ended flat on Thursday, near a more than five-week closing high hit in the previous session, as gains in beverage and construction shares were offset by losses in bank stocks.

The Colombo stock index ended 0.02% lower at 6,451.55, edging down from its highest close since 14 August hit on Wednesday.

“The interest in blue chips is continuing with buying momentum and positive sentiment, even though the market ended flat,” said Dimantha Mathew, head of research at First Capital Holdings.

“Unlike dull periods, we now see block trades and there are continuous enquiries specially from foreigners.”

Shares of biggest listed lender Commercial Bank of Ceylon Plc ended 0.6% weaker, while Hemas Holdings Plc fell 0.8%. Shares in Ceylon Tobacco Company Plc rose 0.5% and Access Engineering Plc rose 3.2%.

Foreign investors bought a net Rs. 54.1 million ($354,289) worth of shares, extending the year-to-date net foreign inflow to Rs. 17.7 billion.

Turnover stood at Rs. 541.4 million, less than this year’s daily average of around Rs. 924 million.