Sri Lanka rupee recovers from record low; stocks down amid foreign outflows

Reuters: The Sri Lankan rupee recovered on Friday to close firmer on central bank intervention after the currency touched its record low hit in the previous session, while shares fell for a second straight session amid foreign outflows.

** The rupee touched its all-time low of 169.40 per dollar hit on Thursday on importer demand for the greenback and foreign selling in government securities, but intervention by the central bank helped the currency close firmer, market sources said.

** The rupee ended at 169.15/30 per dollar, compared with the previous close of 169.35/55.

** The rupee has weakened 4.7 percent so far this month against the dollar after a 1.2 percent drop in the previous month, and has declined 10.2 percent so far this year.

** The Colombo stock index fell 0.12 percent to 5,862.18. The index hit its lowest close since Dec. 18, 2013 on Tuesday.

** Data from the central bank showed foreign investors sold government securities worth a net 8.8 billion rupees ($52.19 million) in the week ended Sept. 19, the highest since the week to Dec. 6. Sri Lanka has suffered a net outflow of 62.3 billion rupees in securities so far this year.

** Stock market turnover was 663.1 million rupees ($3.92 million) on Friday, less than this year’s daily average of 787.8 million rupees.

** Foreign investors sold a net 58.1 million rupees worth of shares on Friday, extending the year-to-date net foreign outflow to 5.83 billion rupees worth of equities. 

($1 = 169.0000 Sri Lankan rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Subhranshu Sahu)

Sri Lanka rupee hits record low; shares fall amid foreign outflows

Reuters: The Sri Lankan rupee hit a record low on Thursday as foreign investors exited government securities after the U.S. Federal Reserve raised interest rate for a third time this year, while shares fell in thin trade amid foreign outflows.

** The rupee hit a new low of 169.40 per dollar on importer demand for the greenback and as foreign banks bought the U.S. currency to facilitate foreign selling in government securities, but intervention by the central bank limited the fall, market sources said.

** The rupee ended at 169.35/55 per dollar, compared with the previous close of 169.00/20. The previous record low was 169.05 per dollar hit on Wednesday.

** The rupee has weakened 4.8 percent so far this month against the dollar after a 1.2 percent drop in the previous month, and has declined 10.2 percent so far this year.

** The Colombo stock index fell 0.31 percent to 5,869.31. The index hit its lowest close since Dec. 18, 2013 on Tuesday.

** Data from the central bank showed foreign investors sold government securities worth a net 8.8 billion rupees ($52.19 million) in the week ended Sept. 19, the highest since the week to Dec. 6. Sri Lanka has suffered a net outflow of 63.7 billion rupees in securities so far this year.

** Stock market turnover was 419.8 million rupees on Thursday, around half of this year’s daily average of 788.7 million rupees. 

** Foreign investors sold a net 110.5 million rupees worth of shares on Thursday, extending the year-to-date net foreign outflow to 5.77 billion rupees worth of equities. 

($1 = 169.1000 Sri Lankan rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Subhranshu Sahu)

Sri Lankan shares recover from near 5-yr closing low on bargain- hunting

Reuters: Sri Lankan shares recovered from their lowest close in nearly five years hit in the previous session and ended about 1 percent higher on Wednesday as investors picked up battered stocks.

The benchmark index hit a near five-year low on Tuesday on foreign selling amid a weaker rupee and government plans to curb imports hurt investor sentiment.

The Colombo stock index rose 0.92 percent to 5,887.52, pulling away from its lowest close since Dec. 18, 2013 hit on Tuesday.

“Market bounced back with buying in heavyweights like John Keells which came down over the last few days,” said Hussain Gani, deputy CEO, Softlogic Stockbrokers.

“We have seen some investors picking up value shares. But most of the investors are still waiting to see if the rupee is stabilising and the economic impact of rupee’s fall.”

Prime Minister Ranil Wickramasinghe said on Monday the government would take measures to impose taxes to curb imports by $500 million to $1 billion to face the currency crisis.

Sri Lanka’s finance minister urged its people to buy local products and shun unnecessary imports in order to reduce the trade deficit and help stabilise a rupee currency that revisited its all-time low on Wednesday.

The rupee has weakened 4.6 percent so far this month after a 1.2 percent drop last month, and has declined 10 percent so far this year.

Analysts said the acceleration in the rupee’s depreciation was creating panic among investors.

Turnover was 318.5 million rupees ($1.89 million), less than half of this year’s daily average of 790.8 million rupees.

Foreign investors sold a net 49.6 million rupees worth of shares on Wednesday, extending the year-to-date net foreign outflow to 5.7 billion rupees worth of equities.

Analysts said the recent fuel price hike also hurt investor confidence as it could hit corporate earnings. Fuel retailers raised gasoline and diesel prices earlier this month for a third time in four months due to higher global oil prices and a weaker rupee.

Investors are awaiting cues from the national budget in November.

Shares of conglomerate John Keells Holdings Plc rose 3.8 percent while Sri Lanka Telecom Plc jumped 6.5 percent and Commercial Leasing and Finance Company Plc closed 8.0 percent firmer. 

($1 = 168.8000 Sri Lankan rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Vyas Mohan)

Sri Lanka shares fall to near 5-year closing low on foreign selling

Reuters: Sri Lankan shares fell over 1 percent on Tuesday to their lowest close in nearly five years, as foreign investor selling, a weaker rupee and government plans to curb imports hurt investor sentiment.

Prime Minister Ranil Wickramasinghe said on Monday the government would take measures to impose taxes to curb imports by $500 million to $1 billion to face the currency crisis.

The rupee hit a record low for an eighth straight session on Friday despite the central bank’s intervention. It fell to an all-time low of 169.00 per dollar on Friday, weighed down by importer demand for the scarce U.S. currency.

The rupee has weakened 4.5 percent so far this month after a 1.2 percent drop last month, and has declined 9.97 percent so far this year.

Analysts said the acceleration in the rupee’s depreciation was creating panic among investors.

The Colombo stock index declined 1.21 percent to 5,833.58 on Tuesday, its lowest close since Dec. 18, 2013. This was also the sharpest single-day drop since late November 2017.

“It’s another disastrous day, lots of exits happened. It’s mainly because of panic selling, that’s why the market came down sharply in lower turnover,” said Dimantha Mathew, head of research at broker First Capital Holdings.

Turnover was 297.6 million rupees ($1.77 million), the lowest since Sept. 6, and less than half of this year’s daily average of 793.5 million rupees.

Foreign investors sold a net 60.9 million rupees worth of shares on Tuesday, extending the year-to-date net foreign outflow to 5.6 billion rupees worth of equities.

Analysts said the recent fuel price hike also hurt investor confidence as it could hit corporate earnings. Fuel retailers raised gasoline and diesel prices earlier this month for a third time in four months due to higher global oil prices and a weaker rupee.

Investors are awaiting cues from the national budget in November.

Shares of Ceylon Tobacco Company Plc fell 1.5 percent, Hemas Holdings Plc lost 4.3 percent, Sri Lanka Telecom Plc ended 5.7 percent down and conglomerate John Keells Holdings Plc closed 1.1 percent lower. 

($1 = 168.5500 Sri Lankan rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Subhranshu Sahu)

Sri Lanka shares hit over 30-month closing low on rupee woes

Reuters Sri Lankan shares dropped to their lowest close in more than 30 months on Friday as foreign investors sold banking stocks, while a weaker rupee dented investor sentiment as well.

The Colombo stock index ended 0.29 percent weaker at 5,904.90, its lowest close since March 9, 2016. It lost 2.1 percent this week, its second straight weekly drop.

“Today, the market came down on foreign selling in banking shares,” said Dimantha Mathew, head of research at broker First Capital Holdings, adding that the acceleration in the rupee’s depreciation was creating panic among investors.

The rupee hit a record low for an eighth straight session despite the central bank’s intervention. It fell to an all-time low of 169.00 per dollar, weighed down by importer demand for the scarce U.S. currency.

The rupee has weakened 4.5 percent so far this month after a 1.2 percent drop last month, and has declined 9.9 percent so far this year.

Analysts said they expected a minor support for the stock market at 5,900 levels and a stronger support at 5,800 levels.

Turnover was 977.7 million rupees ($5.80 million) on Friday, more than this year’s daily average of 796.3 million rupees.

Foreign investors sold a net 359.9 million rupees worth of shares, extending the year-to-date net foreign outflow to 5.6 billion rupees worth of equities.

Analysts said the fuel price hike also hurt investor confidence as it could hit corporate earnings. Fuel retailers raised gasoline and diesel prices in September for a third time in four months due to higher global oil prices and a weaker rupee.

Investors are awaiting cues from the national budget in November.

Shares of Sampath Bank Plc ended 2.5 percent weaker, Good Hope Plc fell 23 percent, Ceylon Tea Services Plc closed down 8 percent, and Commercial Bank of Ceylon Plc declined 1 percent. 

($1 = 168.6000 Sri Lankan rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Subhranshu Sahu)

Sri Lanka shares hit 30-month low on weak rupee, foreign selling

Reuters: Sri Lankan shares dropped to their lowest close in 30 months on Thursday as foreign investors sold market heavyweight John Keells Holdings, while a weak rupee dented sentiment.

The Colombo stock index ended 0.88 percent weaker at 5,922.18, its lowest close since March 9, 2016. It lost 1.4 percent last week, its first weekly drop in four.

“Uncertainty in the rupee currency is having an impact on the local investor sentiment. It has created a significant negative sentiment,” said Dimantha Mathew, head of research at broker First Capital Holdings.

“We saw a bit of foreign selling pressure also. Big caps started to fall again and with that the overall market saw a significant decline.”

Analyst said they expect a minor support at 5,900 levels, while stronger support at 5,800 levels.

Turnover was 547.6 million rupees ($3.25 million) on Thursday, less than this year’s daily average of 795.3 million rupees.

Foreign investors sold a net 137 million rupees worth of shares extending the year-to-date net foreign outflow to 5.2 billion rupees worth of equities.

Earlier in the session, the Sri Lankan rupee dropped 0.6 percent and hit an all-time low of 168.15 per dollar, pulled down by importer demand for scarce U.S. currency, market sources said.

Analysts said the fuel price hike also hurt investor confidence as it could hit corporate earnings. Fuel retailers raised gasoline and diesel prices in September for a third time in four months due to higher global oil prices and a weaker rupee.

Investors are awaiting cues from the national budget in November.

Shares of Conglomerate John Keells Holdings Plc, which touched its 30-month close during the trade, ended 3.4 percent weaker, Nestle Lanka Plc closed down 2.8 percent, Sampath Bank Plc ended 2.2 percent weaker, and Melstacorp Ltd closed 2.7 percent down.

($1 = 168.6000 Sri Lankan rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez, Editing by Sherry Jacob-Phillips)

Sri Lanka shares snap losing streak to end slightly firmer

Reuters: Sri Lankan shares ended marginally higher on Wednesday, edging up from their 30-month closing low hit in the previous session, as investors picked up battered shares, while sentiment was weighed down by weak rupee and continued foreign selling.

The Colombo stock index ended 0.06 percent firmer at 5,974.75, edging up from its lowest close since March 15, 2016 hit on Tuesday. It lost 1.4 percent last week, its first weekly drop in four.

“Strong buying came to the market after the sharp drop. Bargain hunting and value buying were witnessed,” said Hussain Gani, deputy CEO, Softlogic Stockbrokers.

Turnover was 657.2 million rupees ($3.94 million) on Wednesday, less than this year’s daily average of 796.7 million rupees.

Foreign investors sold a net 207.8 million rupees worth of shares extending the year-to-date net foreign outflow to 5.1 billion rupees worth of equities.

Earlier in the session, the Sri Lankan rupee dropped 0.6 percent and hit an all-time low of 166.95 per dollar, pulled down by importer demand for scarce U.S. currency, market sources said.

Analysts said the fuel price hike also hurt investor confidence as it could hit corporate earnings. Fuel retailers raised gasoline and diesel prices in September for a third time in four months due to higher global oil prices and a weaker rupee.

Investors are awaiting cues from the national budget in November.

Shares of Conglomerate John Keells Holdings Plc ended 1.2 percent higher, a day after they hit a 30-month low, Commercial Leasing and Finance Co Plc ended 7.4 percent firmer, and Melstacorp Ltd closed 2.8 percent higher.

($1 = 166.7000 Sri Lankan rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez, Editing by Sherry Jacob-Phillips)