Sri Lankan shares retreat from 2-month lows to end higher, rupee weakens

Reuters: ** Sri Lankan shares closed higher on Wednesday as banks and diversified shares gained after the its central bank asked licensed lenders to cut interest rates. The rupee closed weaker. 

** The country’s central bank on Tuesday said that the Monetary Board decided to order the licensed banks to reduce interest rates on all loans and advances by at least 200 basis points by Oct. 15, 2019. 

** As a result, the benchmark stock index ended 0.33% up at 5,762.40. So far this year, the stock index has dropped 4.8%. 

** Equity market turnover was 220.3 million Sri Lankan rupees ($1.21 million), well below this year’s daily average of about 663.9 million rupees so far. Last year’s daily average was 834 million. 

** Foreign investors bought a net 13 million rupees worth of shares on Wednesday, but they have been net sellers of 2.79 billion rupees worth of equities so far this year, according to index data.

** Meanwhile, the Sri Lankan rupee weakened after the International Monetary Fund (IMF) lowered the country’s growth forecast for 2019.

** The rupee closed 0.28% weaker at 181.55/70 to the dollar, compared with Tuesday’s close of 181.05/25. However, the currency is up 0.58% for the year. 

** The IMF said it has cut its forecast for Sri Lanka’s 2019 economic growth to 2.7% from 3.5%, as the Easter Sunday attacks on hotels and churches earlier this year dented tourism and broader business activity.

** Foreign outflows from government securities, one of the major reasons behind the rupee’s weakness recently, may not see a respite till the end of parliament elections in 2020, some analysts said.

** The central bank does not release foreign flow numbers on a daily basis, but weekly data in the past four weeks has shown a steady outflow.

** Foreign investors sold government securities worth 545.9 million rupees in the week ended Sept. 18, data showed, extending the net foreign outflow so far this year to 54.9 billion rupees through Sept. 11, central bank data showed. 

($1 = 181.5000 Sri Lankan rupees) 

(Reporting by Ranga Sirilal; editing by Uttaresh.V)

Sri Lankan rupee firms, stocks close at over two-month low

Reuters: ** Sri Lanka’s rupee closed firmer for the first time in seven sessions on Tuesday, while equities closed at a two-month low, as investors waited for the ruling party to announce its candidate for the Nov. 16 election. 

** The market has been waiting for Prime Minister Ranil Wickremesinghe-led United National Party (UNP) candidate and its policies, brokers and traders said. The opposition party had named a hard-line former defence chief as its presidential candidate.

** The rupee closed 0.14% firmer at 181.05/25 to the dollar, compared with Monday’s close of 181.30/70. The currency is up 0.86% for the year. 

** Foreign outflows from government securities, which continued for a fifth straight week as of Sept. 18, may not see a respite till the end of parliament elections in 2020, some analysts said.

** The central bank does not release foreign flow numbers on a daily basis, but weekly data in the past four weeks has shown an outflow.

** Foreign investors sold government securities worth 545.9 million rupees in the week ended Sept. 18, data showed, extending the net foreign outflow so far this year to 54.9 billion rupees through Sept. 11, central bank data showed. 

** The benchmark stock index ended down 0.57% at 5,743.54, their lowest close since July 23. So far this year, the stock index has dropped 5.1%. 

** Equity market turnover was 260.9 million rupees ($1.44 million), less than half of this year’s daily average of about 667.5 million rupees so far. Last year’s daily average was 834 million. 

** Foreign investors sold a net 98.5 million rupees worth of shares, extending the year-to-date outflows to 2.74 billion rupees worth of equities, according to index data. 

($1 = 181.0500 Sri Lankan rupees) 

(Reporting by Shihar Aneez; editing by Uttaresh.V)

Sri Lankan rupee, stocks end weaker; ruling party's decision awaited

Reuters: ** Sri Lanka’s rupee closed weaker for the sixth straight session on Monday, while equities closed lower ahead of a key decision by Prime Minister Ranil Wickremesinghe’s ruling party on its candidate for the Nov. 16 election. 

** The market has been waiting for Wickremesinghe-led United National Party (UNP) candidate and its policies, brokers and traders said. The opposition party had named a hard-line former defence chief as its presidential candidate.

** The rupee closed 0.1% weaker at 181.30/70 to the dollar, compared with Friday’s close of 181.10/20. The currency fell 0.47% last week, but is up 0.7% for the year. 

** Analysts said foreign outflows from government securities have shown a declining trend and the market is now waiting for foreign investors to reverse the selling trend.

** The central bank does not release foreign flow numbers on a daily basis, but weekly data in the past four weeks has shown an outflow.

** Foreign investors sold government securities worth 545.9 million rupees in the week ended Sept. 18 for a fifth straight week, data showed, extending the net foreign outflow so far this year to 54.9 billion rupees through Sept. 11, central bank data showed. 

** The benchmark stock index ended down 0.3% at 5,776.48. The bourse fell 0.54% last week. 

** So far this year, the stock index has dropped 4.72%. 

** Equity market turnover was 485.6 million rupees ($2.68 million), less than this year’s daily average of about 670 million rupees so far. Last year’s daily average was 834 million. 

($1 = 181.3000 Sri Lankan rupees) 

(Reporting by Shihar Aneez; Editing by Sriraj Kalluvila)

Sri Lankan rupee gains for third straight session; stocks steady

Reuters: ** Sri Lanka’s rupee closed a tad firmer on Wednesday with foreign outflows from government securities showing a declining trend, while stocks ended steady. 

** The rupee ended 0.03% firmer at 180.25/45 per dollar. It closed at 180.30/50 on Tuesday after gaining in the two sessions. The currency is up 1.3% this year. 

** Foreign investors sold government securities worth 500 million rupees in the week ended Sept. 4, data showed, extending the year to date net foreign outflow to 53.7 billion rupees through Sept. 4, central bank data showed. 

** The weekly outflow last week, however, was far less than the average weekly outflow of 12.85 billion rupees in the previous two weeks. 

** Meanwhile, the benchmark stock index ended 0.03% weaker at 5,820.84. 

** Investors have been in a wait-and-watch mode since the main opposition party named a hardline former defence chief as its presidential candidate. 

** So far this year, the stock index has dropped about 3.8%. 

** Equity market turnover was 427.1 million rupees ($2.37 million) on Wednesday, compared with this year’s daily average of about 648.2 million rupees so far. Last year’s daily average was 834 million. 

** Foreign investors sold a net 92.9 million rupees worth of shares on Wednesday, extending the year-to-date net foreign outflow to 1.87 billion rupees worth of equities, according to index data.

($1 = 180.2500 Sri Lankan rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Steve Orlofsky)

Sri Lankan rupee strengthens for second day; stocks rise

Reuters: ** Sri Lanka’s rupee closed stronger for a second day on Tuesday, after foreign outflows from government securities showed a declining trend, while stocks too ended higher. 

** The rupee ended 0.1% firmer at 180.30/50 per dollar. It closed at 180.40/60 on Monday. The currency is up 1.3% this year. 

** Foreign investors sold government securities worth 500 million rupees in the week ended Sept. 4, data showed, extending the year to date net foreign outflow to 53.7 billion rupees through Sept. 4, central bank data showed. 

** The weekly outflow last week, however, was far less than the average weekly outflow of 12.85 billion rupees in the previous two weeks. 

** Meanwhile, the benchmark stock index rose 0.1% to 5,822.47. 

** Investors have been in a wait-and-watch mode since the main opposition party named a hardline former defence chief as its presidential candidate. 

** So far this year, the stock index has dropped about 3.8%. 

** Equity market turnover was 716.3 million rupees ($3.97 million) on Tuesday, more than this year’s daily average of about 649.5 million rupees so far. Last year’s daily average was 834 million. 

** Foreign investors sold a net 46.4 million rupees worth of shares on Tuesday, extending the year-to-date net foreign outflow to 1.77 billion rupees worth of equities, according to index data. 

($1 = 180.3000 Sri Lankan rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez; editing by Uttaresh.V)

Sri Lankan rupee recovers from 7-month closing low; stocks rise

Reuters: ** Sri Lanka’s rupee closed higher on Monday from its lowest level in more than seven months hit in the previous session after foreign fund outflows from government securities showed a declining trend, while stocks rose for the first time in four sessions. 

** The rupee ended 0.2% firmer at 180.40/60 per dollar, edging up from its lowest since Jan. 28 that was hit on Friday. It closed at 180.80/181.00 on Friday. The currency is up 1.2% this year.

** Foreign investors sold government securities worth 500 million rupees in the week ended Sept. 4, data showed, extending the year to date net foreign outflow to 53.7 billion rupees through Sept. 4, central bank data showed. 

** Foreigners sold 25.7 billion rupees worth of government securities in the previous two weeks.

** A senior central bank official said on Thursday that outflows from the government securities have been settling following the central bank’s rate cut last month.

** The central bank lowered rates for the second time in four months on Aug. 23 to boost sluggish growth after tourism and investments plummeted following deadly Easter Day bomb attacks by Islamist militants. 

** Central bank Governor Indrajit Coomaraswamy after the policy said the bank was ready to cope with the outflow of $700 million foreign funds invested in Sri Lankan government securities. Exit of some funds had resulted in some pressure on the local currency. 

** Meanwhile, the benchmark stock index closed firmer on Monday, ending a three straight session losing streak. It rose 0.31% to 5,816.52, edging up from its lowest close since July 25 hit on Friday. The bourse fell 1.6% last week.

** Investors have been in a wait-and-watch mode since the main opposition party named a hardline former defence chief as its presidential candidate. 

** So far this year, the stock index has dropped about 3.9%. 

** Equity market turnover was 381.5 million rupees ($2.11 million) on Monday, around half of this year’s daily average of about 649.1 million rupees so far. Last year’s daily average was 834 million. 

** Foreign investors sold a net 1.1 million rupees worth of shares on Monday, extending the year-to-date net foreign outflow to 1.73 billion rupees worth of equities, according to index data. 

($1 = 180.4500 Sri Lankan rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez; Editing by Bernard Orr)

Sri Lankan rupee ends at its lowest in over 7 months; stocks fall

Reuters: ** Sri Lanka’s rupee closed at its lowest level in over seven months as foreign fund outflows from government securities rose, while stocks extended losses for the third straight session. 

** The rupee ended weaker at 180.80/181.00 per dollar, its lowest since Jan. 28. It closed at 180.75/90 on Thursday. However, the currency is up 1% this year.

** Foreign investors sold government securities worth 25.2 billion rupees in the two weeks ended on Aug. 28, data showed, extending the net foreign outflow to 53.2 billion rupees through Aug. 28, central bank data showed.

** However, a senior central bank official said on Thursday that outflows from the government securities have been settling following the central bank’s rate cut last month.

** The central bank lowered rates for the second time in four months on Aug. 23 to boost sluggish growth after tourism and investments plummeted following deadly Easter Day bomb attacks by Islamist militants. 

** Central bank Governor Indrajit Coomaraswamy after the policy said the bank was ready to cope with the outflow of total $700 million foreign funds invested in Sri Lankan government securities. Exit of some funds had resulted in some pressure on the local currency. 

** Meanwhile, the benchmark stock index fell 0.88% to 5,798.57, its lowest close since July 25. For the week, it fell 1.6%.

** Investors have been in a wait-and-watch mode since the main opposition party named a hardline former defence chief as its presidential candidate. 

** So far this year, the stock index has dropped about 4.2%. 

** Equity market turnover was 631 million rupees ($3.49 million)($2.87 million) on Friday, a little less than this year’s daily average of about 650.8 million rupees so far. Last year’s daily average was 834 million. 

** Foreign investors sold a net 80.3 million rupees worth of shares on Friday, extending the year-to-date net foreign outflow to 1.73 billion rupees worth of equities, according to index data. 

($1 = 180.8000 Sri Lankan rupees) 

(Reporting by Ranga Sirilal and Shihar Aneez; editing by Uttaresh.V)