Friday Nov 15, 2024
Friday Nov 15, 2024
Saturday, 23 November 2019 00:00 - - {{hitsCtrl.values.hits}}
Reuters: Shares closed lower on Friday, slipping from a more than one-year high hit earlier in the week, while the rupee ended weaker as investors awaited the newly elected leader’s economic policies.
The benchmark stock index .CSE ended down 0.31% at 6,119.27, moving away from its highest close since 9 August 2018 hit on Tuesday. But the bourse has gained 1.6% for the week, and is up 1.11% for the year. “It was a bit volatile day. At one point the index went up by 50 points and then there was profit taking,” said First Capital Holdings senior research analyst Atchuthan Srirangan.
“The sentiment is now eroding and the market is waiting for the new policies of the Government.”
The rupee ended 0.22% weaker at 180.00/20 per dollar. It closed at 179.60/75 on Thursday and is up 1.44% so far this year.
Foreign investors were net sellers of riskier assets for the 12th straight session on Friday.
They sold a net Rs. 50.1 million ($278,333) worth of shares on Friday, extending the net foreign outflow from the equities market to Rs. 9.24 billion for the year, according to index data.
Equity market turnover was Rs. 925.6 million, well above this year’s daily average of about Rs. 709.5 million. Last year’s daily average was Rs. 834 million.
Foreign investors were net buyers of Government securities on a net basis for the fourth straight week, purchasing a net Rs. 2.2 billion worth of Government securities in the week ended 13 November.
Total foreign outflows from Government securities through 13 November stood at Rs. 48 billion, Central Bank data said.
Gotabaya Rajapaksa has appointed his brother Mahinda Rajapaksa, the current Prime Minister, as the interim Government’s new Finance Minister.
“Sri Lanka’s Presidential Election significantly increases policy uncertainty” and achieving the newly elected leader’s ambitious growth targets could entail stimulus measures that erode fiscal headroom, Fitch Ratings in a note on Thursday said.
However, the Central Bank said the rating agency had depicted the complete opposite of the realised positive market response to the outcome of the election.
