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Thursday, 20 June 2019 00:08 - - {{hitsCtrl.values.hits}}
REUTERS: Shares closed at a more than six-week high on Wednesday, boosted by foreign inflows into equities, while the rupee ended slightly firmer on dollar sales by exporters. The benchmark stock index ended 0.31% firmer at 5,392.30, its highest close since 3 May. The bourse rose 1.61% last week, but has dropped 10.91% so far this year.
The economy picked up to 3.7% in first quarter 2019, government data showed on Wednesday. Finance Minister Mangala Samaraweera on Tuesday said the economy grew at 3.5% in the first quarter recovering from 1.8% in the previous quarter.
The Central Bank cut its key interest rates on 31 May to support a faltering economy as overall business and consumer confidence slumped following deadly bomb attacks in April.
Wednesday's stock market turnover was Rs. 542.01 million ($ 3.07 million), in line with this year's daily average of about Rs. 550.6 million. Last year's daily average was Rs. 834 million.
Foreign investors bought a net Rs. 178.5 million worth of shares on Wednesday, first net buying in eight sessions. They have sold a net Rs. 522.6 million for the seven days through Tuesday. The year-to-date net foreign outflow is at Rs. 5.87 billion.
The rupee ended at 176.65/80 per dollar, compared with Tuesday's close of 176.80/85, market sources said.
Analysts expect the rupee to weaken further as money flows out of stocks and government securities. The rupee fell 0.14% last week, but is up 3.39% for the year. Exporters had converted dollars as investors' confidence stabilised after a $ 1 billion sovereign bond was repaid in mid-January.
The rupee dropped 16% in 2018 and was one of the worst-performing currencies in Asia.
Foreign investors bought a net Rs. 311 million worth of government securities in the week ended 12 June, but the island nation's net foreign outflow was at Rs. 21.6 billion so far this year, Central Bank data showed.
