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Sri Lanka stocks down 1.2-pct, rupee weaker

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Redbulls

Redbulls
Director - Equity Analytics
Director - Equity Analytics

June 13, 2013 (LBO) - Sri Lanka's stocks closed down 1.22 percent on Thursday for third straight day and the rupee closed lower touching 128 to the dollar, amid turmoil in global markets, dealers and brokers said.

The benchmark Colombo All Share Index closed 76.89 points lower at 6,207.87 and the S&P SL 20 Index closed 52.3 2points lower at 3,499.09 down 1.47 percent.

Turnover was 480 million rupees down from 566 million day earlier. Foreigners brought 67 million rupees worth shares while selling 24 million rupees of shares, in a day that 46 stocks advanced and 147 stocks declined.

The spot US dollar closed at 127.97/128.05 to the US dollar, near three month low, dealers said.

There had been some profit taking in Treasuries by foreign investors said. In many Asian markets foreign investors have cut their positions, leading to currency weakness.

Indonesia made a surprise rate hike Thursday, to shore up the rupiah.

In equity markets Ceylon Cold Stores contributed most to the index gain closing at165.00 rupees up 6.20 rupees. Overseas Realty closed at 18.70 rupees up 30 cents and N D B Capital gained 7.40 rupee to close at 488.00 rupees DFCC Bank closed at 140.70 rupees down 2.60 rupeess and National Development Bank closed at 167.70 rupees down 4.70 rupees.

Pan Asia closed at 19.90 rupees down 10 cents. Union Bank of Colombo closed at 18.90 rupees down 10 cents and Sampath Bank close at 213.00 rupees down 2 rupees. Commercial Bank Of Ceylon lost 1.50 rupees to close at 96.00 rupees.

Distilleries Company lost 60 cents to close at 194.40 rupees, The Lion Brewery closed at 385.00 down 50 cents and Ceylon Tobacco Company closed at 952.20 rupees down 23.80 rupees.

John Keells Holdings lost 6.50 rupees to close at 267.00 rupees and Nestle Lanka lost 5.30 rupees to close at 1978.20 rupees.
http://www.lankabusinessonline.com/news/sri-lanka-stocks-down-1.2-pct,-rupee-weaker/337816273

2Sri Lanka stocks down 1.2-pct, rupee weaker Empty Fall of rupee, Bourse persists Thu Jun 13, 2013 11:13 pm

sriranga

sriranga
Co-Admin

Reuters: The rupee fell to its six-month closing low on Thursday as small-time foreign bondholders cut their exposure in high yielding Government securities amid US Treasury yields moving upward and importers buying dollars on fears over a further depreciation, dealers said.  The rupee ended 0.45% down at 128.00/10 per dollar, its lowest close since 19 December. It had closed at 127.45/50 on Wednesday. Two dealers said the lowest deal was done at 128.05.

“Some foreign investors sold their bonds to minimise their stake following the trend in other emerging markets,” a currency dealer from a foreign bank said. “It is due to the rise in US Treasury yields and not because Sri Lanka is doing bad.”

Local dealers said foreign banks were buying dollars as some overseas investors felt it was the best time to exit with the rupee and interest rates on a falling trend. They added importers were buying dollars on concerns that the local currency may fall further.

On Thursday, the Central Bank Deputy Governor said the monetary authority could take more steps to reduce high lending rates if commercial banks do not fall in line with monetary policy rate cuts.

The rupee has weakened 0.4% so far this year following a 10.7% depreciation in 2012 as the central bank allowed for a flexible exchange rate regime in February 2012. The rupee has fallen 1.23% so far this week.
Sri Lanka’s main stock index fell to a one-month closing low with trading volume slumping to a two-month low despite thin foreign buying.

It fell 1.22%, or 76.89 points, to 6,207.87, its lowest close since 14 May.
 
The market witnessed a net foreign inflow of Rs. 42.8 million, extending the net foreign buying in Sri Lankan shares to Rs. 16.1 billion so far this year.

The day’s turnover was at Rs. 480 million, the lowest since 12 April and less than half of this year’s daily average of Rs. 1.03 billion.
http://www.ft.lk/2013/06/14/fall-of-rupee-bourse-persists/

http://sharemarket-srilanka.blogspot.co.uk/

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