Monday 7 September 2015

Sri Lankan shares fall to near 7-week low on weaker rupee

Reuters: Sri Lankan shares fell for a second straight session on Monday to close at a near seven-week low as the rupee continued its downward trend after the central bank floated the currency.

Investor risk appetite was also affected by weak Asian stocks, weighed down by a fall in China shares following a four-day market holiday.

The Sri Lankan rupee fell on Monday, following a 3-percent decline in the previous session, as late importer dollar demand outpaced early exporter dollar sales.

The main stock index ended 0.91 percent lower, or 65.41 points weaker, at 7,149.70, its lowest close since July 21.

"Local selling continued and investors are worried about the fall in the rupee. Also, the global situation is not that good for the market," said a stockbroker asking not to be named.

Foreign investors, however, bought 69.9 million rupees ($508,364) worth of shares on Monday, but they have sold a net 3.42 billion rupees so far this year.

Turnover stood at 599.6 million rupees, around half of this year's daily average of 1.15 billion rupees.

Shares in Nestle Lanka Plc fell 2.02 percent, while Hayleys Plc fell 7.74 percent, dragging the index down.

($1 = 137.5000 Sri Lankan rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Anand Basu)

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