Stock market up on blue chips, foreign buying

Reuters: Shares closed Thursday at a near-two week high, helped by gains in blue chips and as foreign investors picked up beaten down stocks.

The benchmark index of the Colombo Stock Exchange ended 0.2% higher, or 13.05 points, at 6,442.09, its second straight session of gains.

Turnover stood at Rs. 217.7 million ($ 1.47 million), less than a third of this year’s daily average of 721.1 million.

Foreign investors were net buyers for a second straight session, picking up stocks worth Rs. 61.5 million. They have net sold Rs. 1.3 billion worth of shares so far this year.

“Suddenly, foreign buying has come into the market after the index fell to near 6,400. It’s like the psychological barrier of 6,400 levels has worked,” said Dimantha Mathew, head of research at First Capital Equities Ltd.

Shares in Nestle Lanka Plc jumped 4.47% while conglomerate John Keells Holdings Plc gained 1.27% and the biggest listed lender, Commercial Bank of Ceylon Plc, rose 0.67%.

Rupee recoups early losses to end steady

Reuters : The rupee ended steady on Thursday as dollar selling by exporters late in the day erased losses due to demand for the greenback from importers earlier, dealers said.

Rupee forwards were active, with one-week forwards closing steady at 148.80/90.

“The (dollar) demand was there, but we saw some export (dollar) conversions in the latter part (of the day),” a currency dealer said, asking not to be named.

The market shrugged off comments by the country’s Central Bank chief earlier this week on the stability of the currency.

Central Bank of Sri Lanka Governor Indrajit Coomaraswamy said late on Tuesday that he expected the rupee to stabilise once a stake sale in the southern port of Hambantota to a Chinese investor is completed in four to five months.

Coomaraswamy said that proceeds of the $ 1 billion stake sale would be converted into rupees, easing the strain on the currency that has been under pressure since mid-September due to seasonal demand for US dollars from importers.

Dealers said the currency has also been hit due to selling of government securities by foreign investors.

Foreign investors have net sold Rs. 16 billion ($ 108.40 million) worth of government securities in the two weeks to 26 October, data from the Central Bank showed.