Rupee strengthens for second day; stocks rise

(Colombo) REUTERS: Sri Lanka’s rupee closed stronger for a second day yesterday, after foreign outflows from government securities showed a declining trend, while stocks too ended higher. 

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

Foreign investors sold government securities worth Rs.500 million in the week ended Sept. 4, data showed, extending the year-to-date net foreign outflow to Rs.53.7 billion through Sept. 4, 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 rose 0.1 percent to 5,822.47.  Investors have been in a wait-and-watch mode since the main opposition party named a hard-line 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.716.3 million (US$ 3.97 million) yesterday, more than this year’s daily average of about Rs. 649.5 million so far. Last year’s daily average was Rs.834 million. 

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