Bourse gains on hope of political stability

 Reuters: Shares hit a one-month high on Wednesday, led by large-caps and banks, as hopes of political stability after the 17 August parliamentary elections improved sentiment.

On Tuesday, President Maithripala Sirisena criticised a comeback bid by Mahinda Rajapaksa, whom he beat in elections last January, and his own allies for backing him to become prime minister.

Analysts see Sirisena’s statement as a step towards strengthening his grip and likely to help the ruling coalition win at the polls.

The ruling United National Party (UNP) has formed a coalition with some other parties to contest the election. Political analysts say the alliance could increase the ruling party’s chances of winning.

The main stock index ended up 0.56%, or 39.19 points, at 7,066.19, its highest close since 15 June.

“The president’s speech would have helped the index to move up. The tendency is for the same government to continue which means continuity of policies,” said Dimantha Mathew, a research manager at First Capital Equities Ltd.

The day’s turnover was Rs. 833.3 million ($ 6.2 million), lower than this year’s daily average of Rs. 1.05 billion.

“Institutional and high net worth investors are slowly coming into the market,” Mathew added.

Carson Cumberbatch Plc rose 0.76%, while the biggest listed Lender Commercial Bank of Ceylon Plc gained 1.03%, pushing up the overall index.

Distiller Sri Lanka Plc jumped 3.96%, while Sri Lanka Telecom Plc rose 0.42%.

Rupee ends steady on state bank dollar sales

Reuters: The rupee ended steady on Wednesday in dull trade as a state-owned bank maintained its dollar selling rate at 133.80 amid demand for the greenback from importers, dealers said.

The rupee fell for the first time in seven sessions on Monday after the state-run bank raised the dollar-selling rate by 0.15% to 133.80 from 133.60.

“Bids were there but with offers. Exporters were reluctant to sell dollars and there was importer demand,” a currency dealer said.

The rupee is under pressure as more than Rs. 80 billion ($ 598 million) worth of government securities would mature this week and some foreign investors may exit from treasury bonds, another dealer said, asking not to be named as he was not authorised to talk to the media.

Two other dealers confirmed the maturity amount.