Sri Lanka rupee steady, cbank stops intervention; bourse slips

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Sri Lanka stocks close down 0.4-pct

June 18, 2013 (LBO) - Sri Lanka's stocks closed down at 0.42 percent on Tuesday, continuing its downward trend with investors taking profits and index heavy stocks continuing to drop, brokers said.

The benchmark Colombo All Share Index closed 26.11 points lower at 6,193.00 and the S&P SL 20 Index closed 0.33 points higher at 3,497.12 up 0.01 percent.

Turnover was 291 million rupees down from 310 million a day earlier.

Foreigners brought 92 million rupees worth shares while selling 59 million rupees of shares, in a day that 48stocks advanced and 153 stocks declined.

Ceylon Tobacco Company contributed most to the index closing at 1002.20 rupees up 12.20 rupees helped by a crossing of 25,000 shares at 1000 rupees per share.

Commercial Leasing & Finance closed at 4.30 rupees up 20 cents and Ceylinco Insurance gained 56.90 rupees to close at 1016.90 rupees.

Negative contributors included N D B Capital Holding's losing 45.00 rupees to close at 450.00 rupees, The Lions Brewery closed at 400.00 rupees down by 10 cents and Sri Lanka Telecom lost 50 cents to close at 41.40 rupees.

Pan Asia closed at 19.60 rupees down 30 cents. Union Bank of Colombo closed at 18.30 rupees down 10 cents and Sampath Bank closed at 211.40 rupees up 40 cents. Commercial Bank of Ceylon gained 10 cents to close at 116.50 rupees.

Nestle Lanka gained 2.20 rupees to close at 1930.80 rupees and John Keells Holdings lost 20 cents to close at 264.00 rupees.

Dialog Axiata closed at 8.70 rupees down 10 cents, Chevron Lubricants Lanka gained 3.20 rupees to close at 288.20 rupees and Distilleries Company closed at 192.00 rupees down 1.00 rupee.
http://www.lankabusinessonline.com/news/sri-lanka-stocks-close-down-0.4-pct/1478566603

sriranga

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COLOMBO, June 18 (Reuters) - Sri Lanka's rupee ended steady for a second session on Tuesday as dollar sales by exporters offset importer demand for the greenback in the absence of central bank intervention in the currency market.

The central bank stayed away from the market for the first time in three trading sessions after selling dollars through a state bank to stabilise the local currency after it hit a more than six-month low on Friday.

The rupee closed flat at 128.50/60 to the dollar on Tuesday.

'The rupee ended flat on exporter forward-selling amid importer demand for dollars,' a dealer said on condition of anonymity.

The rupee lost 1.6 percent last week. It fell to 129.00/129.10 per dollar in early trades on Friday, its lowest in six months, as foreign investors sold debt as part of broader selloff in emerging markets on fears that loose global monetary conditions were about to end.

Central Bank Governor Ajith Nivard Cabraal said after market hours on Friday that the fall in the rupee was no cause for concern as foreign investors have been changing their positions rather than pulling out of the island nation's bond market.

The rupee has weakened 0.8 percent so far this year, following a 10.7 percent depreciation in 2012 as the central bank opted for a flexible exchange rate regime in February 2012.

Sri Lanka's main stock index fell to five-week closing low on concern over possible pullout by foreign funds, following regional peers.

It ended 0.42 percent, or 26.11 points, weaker at 6,193, its lowest close since May 6, with daily turnover slumping to a more than two-month low.

The market witnessed net foreign inflows of 32.69 million rupees ($254,200) on Tuesday, extending foreign inflows so far this year to 16.16 billion rupees.

The day's turnover was at 291.7 million rupees, the lowest since April 12 and well below this year's daily average of 1.01 billion rupees.

($1 = 128.6000 Sri Lanka rupees)

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Prateek Chatterjee)

(ranga.sirilal@thomsonreuters.com)(+94-11-232-5540)

(Reuters Messaging: ranga.sirilal.thomsonreuters.com@reuters.net)(twitter.com/rangab a)
http://www.xe.com/news/2013/06/18/3400789.htm

sriranga · 3 Sluggish trading on CSE, turnover Rs. 292mn Tue Jun 18, 2013 10:57 pm

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Trading was sluggish on the Colombo bourse yesterday with a turnover a disappointing Rs. 291.8 million, down from the previous day’s Rs. 310.1 million, with much of the day’s business coming off Ceylon Tobacco where there was a crossing of 25,000 shares at a price of Rs. 1,000 a share generating a turnover of Rs. 25 million and Rs. 40 million on the trading floor on 39,958 shares done between Rs. 990 and Rs. 1,010 closing Rs. 10 up 1,002.20.

Foreign purchases amounted to Rs. 92.09 million, leading to a net inflow of Rs. 32.69 million.

The All Share Price Index closed 26.11 points (0.42%) down while the S&P l20 was up a marginal 0.33 points (0.01%) with 58 gainers trailing 151 losers while 103 counters closed flat.

``There was cautious buying on popular counters like HNB, JKH and Commercial Bank though buyers were not willing to go up on price, waiting to acquire at bargain prices,’’ a broker said.

"The ASPI continued to decline amidst losses across most of the sectors. Activity levels remained low and were centred on banking, beverage and diversified counters, inclusive of a crossing on CTC," John Keells Stockbrokers said.

HNB closed 50 cents up at Rs. 164 on over 0.1 million shares done between Rs. 162.50 and Rs. 164.90 contributing Rs. 21.5 million to turnover, JKH with 37,751 shares done between Rs. 263.50 and Rs. 264.90 closed 20 cents down at Rs. 264 contributing Rs. 10 million to turnover while Commercial Bank (voting) closed 10 cents down at Rs. 116.30 on 80,678 shares done between Rs. 116.30 and 116.90 generating a turnover of Rs. 9.4 million.
http://island.lk/index.php?page_cat=article-details&page=article-details&code_title=81612

sriranga · 4 Rupee flat on state bank dollar trade Tue Jun 18, 2013 10:59 pm

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The rupee closed flat for the second day straight against the US dollar on Tuesday (18) on trades by state banks, currency dealers said.

The rupee closed at Rs. 128.55/60 against the US dollar after opening at the same range.

"It traded at an intra day low of Rs. 128.70/75 but recovered after a state bank sold dollars in the forward exchange market. This could have been for the bank’s own needs, or intervention as a proxy of the Central Bank," a currency dealer said.

The rupee closed at Rs. 128.55/60 against the dollar on Monday after trading at an intraday day high of Rs. 128.80 after opening on Rs. 128.50/70. State banks sold dollars to selected banks which kept the exchange rate stable.

Usually state banks are used by the monetary authority to intervene in the foreign exchange market. Balance of payments problems were created in 2008/9 and again in 2011 by keeping the exchange rate stable through the sell-down of reserves despite widening trade deficits. Low interest rates fuelled credit growth which fed import demand.

Since 2012, the Central Bank has adopted a flexible exchange rate regime, not intervening too much in the foreign exchange market.
http://island.lk/index.php?page_cat=article-details&page=article-details&code_title=81614