Bourse up on foreign buying; Rupee at 1-month closing low

REUTERS: Sri Lankan shares edged up on Tuesday in thin volume trade, ending two sessions of losses, on foreign buying in select shares, while the rupee closed at its lowest level in a month on dollar demand from importers.

The main stock index rose 0.17%, or 9.82 points, to 5,872.43.

Foreign investors bought mainly Lion Brewery Ceylon PLC which ended 5.7% firmer.

Foreign investors were net buyers for the 16th straight session with Rs.224.1 million worth of shares, extending the year-to-date net foreign inflow to Rs.8.42 billion (US$66.56 million). Last year, the bourse saw a net inflow of US$303 million.

The turnover was at Rs.708.5 million, less than this year’s daily average of Rs.964 million.

The market had hit a six-month high on Thursday on hopes of an expected fall in interest rates, after Treasury Secretary P.B. Jayasundera and the Central Bank said official interest rates could ease in May and June.

The rupee fell for a sixth straight session to Rs.126.78/85 per dollar, its lowest close since 22 March, due to demand from importers for the greenback, currency dealers said. The currency had ended at Rs.126.65/85 on Monday.