Stocks end flat; rupee strengthens

(Colombo) REUTERS: Sri Lankan shares closed flat yesterday, as gains in consumer staples were offset by losses in telecommunications shares, while investors also waited for policy manifestos of key presidential candidates. The rupee ended firmer. 

 The benchmark stock index closed 0.01 percent higher at 5,863.99. The index has fallen 3.11 percent so far this year. 

Meanwhile, the rupee ended 0.14 percent firmer at 181.70/80 per dollar compared with Friday’s close of 181.95/182.10. The currency is up 0.49 percent so far this year. 

Foreign investors bought riskier assets for the second time in 14 sessions as campaigning got underway for the country’s presidential election scheduled on November 16. 
They purchased a net Rs.216.2 million worth of shares yesterday, but they have been net sellers of 3.78 billion rupees of equities so far this year, according to index data.

The two presidential frontrunners, former wartime defence chief Gotabaya Rajapaksa and housing minister Sajith Premadasa, are yet to announce their policy framework. Analysts said investors are waiting to see policies on tax, subsidies, and private businesses. 

Equity market turnover was Rs.1.17 billion, well above this year’s daily average of about Rs.664.9 million. Last year’s daily average was Rs.834.0 million. 

Meanwhile, foreign investors sold government securities on a net basis for the eighth time in nine weeks, selling a net Rs.724.9 million worth of government securities in the week ended October 16. 

Total foreign outflows from government securities through October 16 stood at Rs.55.6 billion, as per central bank data.

Sri Lanka’s Central Bank left its key rates unchanged last week after loosening policy earlier this year, although growth is likely to remain subdued as the economy faces rising global risks.