Bourse ends steady; turnover moderate

Wednesday, 31 December 2014 00:46 - - {{hitsCtrl.values.hits}}

Reuters: Stocks ended steady on Tuesday as gains in telecoms were offset by losses in construction shares, with active participation by foreign and institutional investors, stockbrokers said. Turnover was moderate and sentiment was negative as political uncertainty ahead of the 8 January presidential poll capped the gains. The main stock index ended up 0.05% at 7,291.33. “Buying by some foreign and institutional buying helped the market,” a stockbroker said. “We expect the market to be sideways until we see some clear direction on the political front after the elections.” Turnover stood at Rs. 677.7 million ($ 5.17 million), less than half of this year’s daily average of Rs. 1.42 billion, stock exchange data showed. Net foreign inflows into stocks were Rs. 163.5 million, extending net inflows to Rs. 22.05 billion so far this year, exchange data showed. Analysts said defections ahead of the election have hurt sentiment. Since President Mahinda Rajapaksa announced snap elections last month, 23 legislators including former health minister Mithripala Sirisena, who is challenging Rajapaksa’s bid for a third term, have defected. Two opposition legislators have joined the ruling party. Political analysts see a tight race between Rajapaksa and Sirisena, whose New Democratic Front has promised to eliminate corruption and reduce prices of essential goods and fuel by cutting taxes. Rajapaksa has promised good governance and media freedom if he wins. Top fixed-line phone operator Sri Lanka Telecom gained 1.01 percent to Rs. 50, while top mobile phone operator Dialog Axiata rose 0.75% to Rs. 13.40. Construction firm Access Engineering fell 4.04% to Rs. 33.20.

Rupee forwards gain on inflows; importer dollar demand persists

Reuters: Rupee forwards ended slightly firmer on Tuesday as inflows into some banks offset importer dollar demand, though dealers said unusual year-end demand for the greenback from importers still weighed on the currency. Four-day forwards, which were actively traded, closed at 132.05/15 per dollar, up from Monday’s 132.15/30. “There were inflows into a couple of banks. So the rupee rose. But we still see strong demand for dollars from importers,” said a currency dealer. Rupee forwards have been maintained around 132.00 throughout December as the Central Bank defended the currency through moral suasion. Three-day forwards also closed at 132.05/15 per dollar, up from Monday’s close of 132.15/30. Dealers said the three-day forwards were not actively traded on Tuesday. The spot currency was not traded. Dealers said unusually high imports towards the end of 2014 amid lower interest rates and a stable exchange rate have pressured the rupee.