Bourse ends steady; investors await cues on interest rates

Friday, 20 March 2015 00:00 - - {{hitsCtrl.values.hits}}

Reuters: Shares ended steady on Thursday, near six-week lows hit on Wednesday, in dull trade as investors awaited cues on interest rates, stockbrokers said, a day after t-bill yields fell indicating a reversal in rising trend in interest rates. The main stock index ended little changed, edging up 0.04%, or 2.80 points, at 7,046.70, from its lowest close since 2 February hit on Wednesday. It had lost 3.74% in the last 13 sessions through Wednesday. Analysts expect the index to gain on hope that interest rates might gradually come down after yields in t-bills fell between 31 basis points and 44 at a weekly auction on Wednesday after they spiked between 112 basis points and 124 in the two previous weekly auctions. “We don’t expect much to happen in the coming week as everybody is on a wait and see mood and not much of activity is taking place,” said manager of research at First Capital Equities Ltd. Dimantha Mathew The day’s turnover stood at Rs. 330.3 million ($ 2.5 million), around a quarter of this year’s daily average of Rs. 1.26 billion. Foreign investors were net buyers of Rs. 67.9 million worth of shares, extending the year-to-date foreign inflow to Rs. 3.29 billion. The Central Bank on Wednesday said the low interest rate environment is expected to continue benefiting from lower inflation while keeping the policy rates steady. Shares in biggest listed lender Commercial Bank of Ceylon Plc rose 1.71%, while conglomerate John Keells Holdings Plc gained 1.32%. Infrastructure firm Access Engineering fell 3.23% after Sri Lanka’s new Government cancelled an $ 85 million runway project awarded by the previous Government.

Rupee ends steady for 2nd day

Reuters: The rupee ended steady on Thursday for the second straight session as banks’ dollar sales offset importer dollar demand, while concerns over a government probe into bond sales hurt sentiment, dealers said.

Actively-traded two-week rupee forwards ended steady at 134.00/134.10 per dollar. “Today there were some inflows into some banks, which eased the pressure. But importer demand was also there,” said a currency dealer asking not to be named. Sri Lanka has launched a probe into allegations of corruption in Government bond sales held by the central bank since 2012, the prime minister said on Tuesday, after opposition parties called for an independent investigation into a February bond auction.