Rupee ends lower; shares at over five-week low

• Rupee down on mild importer dollar demand-dealers
• Foreigners sell Rs. 382.9 m worth shares on net basis

Reuters: The Sri Lankan rupee edged down on Friday due to slight importer demand for dollars, currency dealers said, while shares hit a fresh five-week low amid retail speculative buying.

The rupee edged down to close at 109.48/52 a dollar from Thursday’s 109.45/50. It had hit a high of 109.30 a dollar on Thursday during the early trade, its highest since 30 October 2008, Reuters data showed.    Sri Lanka’s main share index closed 0.66 per cent or 47.70 points weaker at 7,231.92, its lowest since 4 May.

“Activity levels were driven by increased participation of local high net worth individuals while retail investors chased speculative counters,” John Keells Stockbrokers said in a note.  

Foreign investors were net sellers of Rs. 382.9 million worth of shares on Friday, extending the week’s outflow to Rs. 631.6 million and they have sold a net Rs. 7.02 billion worth shares in 2011 after a record 26.4 billion in 2010.                    

Rupee ends...



The day’s turnover was Rs. 3.32 billion ($ 30.3 million), well above last year’s average of 2.4 billion and this year’s daily average of 2.9 billion.

Traded volume was 248.2 million, against a five-day average of 421.8 million. The 30-day and 90-day average trading volumes were 155.4 million and 103.5 million, respectively. Last year’s daily average was 67.9 million.

The bourse is still Asia’s best performer in 2011 with 8.98 per cent gain, after bringing in the region’s top return of 96 per cent last year.