Sri Lanka stocks up, rupee edges lower

Sept 24, 2013 (LBO) – Sri Lanka stocks closed 0.20 percent higher on Tuesday in a broad rally helped by foreign buying while the rupee lost ground, dealers said. Analysts say the liquidity will put severe downward pressure on the rupee peg, unless it is vigorously defended in the future with unsterilized dollars sales by the central bank.

There was some demand for Treasury bonds caused by the excess cash with the more liquid five year bond yield moving up to 11.87/90 percent during late trading Tuesday from an opening position of 11.80/92 percent, dealers said.

The benchmark Colombo All Share Price Index (ASPI) closed 11.62 points higher on Tuesday to 5,794.47, up 0.20 percent, after peaking at an intraday high of 5,805.22 points.
The S&P SL20 Index closed 8.07 points higher at 3,214.30, up 0.25 percent.

Turnover increased to 816.9 million rupees, up from Monday’s 485.8 million rupees.

Foreigners bought shares worth 445.5 million rupees and sold 203.89 million rupees worth. On Monday, foreigners bought shares worth 199.36 million rupees and sold 189.78 million rupees worth.

According to provisional data, Commercial Bank up 1.80 rupees at 116.80, LOLC up 2.00 rupees to 54.10, Ceylon Tobacco up 5.90 rupees to 1,047.30 contributed most to the index gain.

JKH closed 90 cents higher at 220.90 rupees.

Sri Lanka Telecom closed 80 cents lower 39.20 rupees and Lion Brewery closed 12.40 rupees lower at 377 rupees.

Carson Cumberbatch closed 5.00 rupees lower at 370 rupees and Distilleries closed 2.80 rupees lower at 181.50 rupees.

Dialog closed 10 cents lower at 8.20 rupees.

Sampath Bank closed 2.40 rupees lower at 172.30 rupees and HNB closed flat at 150 rupees.

The rupee edged lower in late trading on Tuesday at 132.15/20 against the US dollar in the spot market after closing at 132.10/15 on Monday.

In money market, excess rupee reserves of rose to 88 billion rupees as more dollars were bought by the central bank to generate rupees.