Bourse falls to near 7-week low on weaker rupee

Reuters: Shares fell for a second straight session on Monday to close at a near seven-week low as the rupee continued its downward trend after the central bank floated the currency.

Investor risk appetite was also affected by weak Asian stocks, weighed down by a fall in China shares following a four-day market holiday.

The Sri Lankan rupee fell on Monday, following a 3% decline in the previous session, as late importer dollar demand outpaced early exporter dollar sales.

The main stock index ended 0.91% lower, or 65.41 points weaker, at 7,149.70, its lowest close since 21 July.

“Local selling continued and investors are worried about the fall in the rupee. Also, the global situation is not that good for the market,” said a stockbroker asking not to be named.

Foreign investors, however, bought Rs. 69.9 million ($ 508,364) worth of shares on Monday, but they have sold a net Rs. 3.42 billion so far this year.

Turnover stood at Rs. 599.6 million, around half of this year’s daily average of Rs. 1.15 billion.

Shares in Nestle Lanka Plc fell 2.02%, while Hayleys Plc fell 7.74%, dragging the index down.