Shares end higher as banks, diversified stocks rally; rupee falls

(Colombo) REUTERS: Sri Lankan shares closed firmer yesterday, led by gains in diversified and banking stocks, while the rupee weakened on higher importer
dollar demand.

The country’s benchmark stock index ended 0.42 percent up at 5,683.47 after slipping from a four-month high on Monday.

The index is down about 6.1 percent so far this year. 

The country’s stock market had a turnover of Rs.339.8 million ($1.93 million), less than this year’s daily average of about Rs.606.5 million so far. Last year’s daily average came in at Rs.834 million. Foreign investors sold a net Rs.25.8 million worth of shares, but they have been year-to-date net buyers worth Rs.1.47 billion equities so far this year, index data 
showed.

Shares of conglomerate John Keells Holdings Plc rose 1.8 percent, the country’s biggest listed lender Commercial Bank of Ceylon ended 1 percent firmer, and LOLC Holdings Plc climbed 1.5 percent. 

Meanwhile, the currency ended 0.06 percent weaker at 176.00/10 per dollar, compared with Monday’s close of 175.90/176.00, as importer demand for the greenback outpaced the dollar selling by banks. 

The rupee is up 3.75 percent so far this year. 

The Central Bank left key interest rates unchanged on July 11 as expected, after cutting them in May to support the economy as tourism and investment plummeted in the wake of deadly suicide bombings in April. 

Foreign investors bought a net Rs.1.22 billion worth of government securities in the week ended July 17, but the market has seen a year-to-date net foreign outflow to Rs.18.46 billion, the Central Bank data showed.