Rupee gains for third straight session; stocks steady

(Colombo) REUTERS: Sri Lanka’s rupee closed a tad firmer yesterday with foreign outflows from government securities showing a declining trend, while stocks ended steady.  The rupee ended 0.03 percent 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  percent this year.  Foreign investors sold government securities worth Rs.500 million in the week ended September 4, data showed, extending the year to date net foreign outflow to Rs.53.7 billion through September 4, the Central Bank data showed.

The weekly outflow last week, however, was far less than the average weekly outflow of Rs.12.85 billion in the  previous two weeks.
Meanwhile, the benchmark stock index ended 0.03 percent 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 percent. Equity market turnover was Rs.427.1 million yesterday, compared with this year’s daily average of about Rs.648.2 million so far. Last year’s daily average was 834 million. 

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