Sri Lankan rupee, stocks close marginally higher

Reuters – ** The Sri Lankan rupee closed slightly firmer in dull trade on Thursday, helped by dollar inward remittances. ** The rupee ended at 179.15/20 per dollar on Thursday, compared with 179.20/25 in the previous session. ** Credit rating agencies Fitch and Standard & Poor’s downgraded Sri Lanka’s sovereign rating on Tuesday, citing refinancing risks and an uncertain policy outlook, after President Maithripala Sirisena’s sacking of his prime minister in October triggered a political crisis. ** On Wednesday, Fitch downgraded Sri Lanka’s financial institutions and Sri Lanka Telecom, citing sovereign downgrade.,, ** Foreigners sold a net 125.3 million rupees ($700,391) worth of stocks on Thursday, and they have been net sellers of 9.4 billion rupees since the political crisis started on Oct. 26. The bond market saw outflows of about 34.2 billion rupees between Oct. 25 and Nov. 28, central bank data showed. ** This year, there have been 18.8 billion rupees of outflows from stocks and 123.2 billion rupees from government securities, the latest data from the bourse and central bank data showed. ** The rupee hit a record low of 180.85 per dollar on Nov. 28, surpassing its previous low of 180.50 hit the previous day. It has weakened about 3.4 percent since the political crisis began. The currency fell 1.8 percent in November and 16.8 percent so far this year. ** Moody’s downgraded Sri Lanka on Nov. 20 for the first time since it started rating the country in 2010, blaming the political turmoil for aggravating its already problematic finances. ** The political paralysis remains the main concern of investors. While Mahinda Rajapaksa and President Sirisena have failed to win support in parliament for their new government, the deposed prime minister Ranil Wickremesinghe’s coalition, which claims it does have majority support in parliament, has not been allowed to try to form a government. Although Rajapaksa was ousted via two confidence votes, he has refused to step down. ** The central bank on Nov. 14 unexpectedly raised its main interest rates to defend the rupee, which has faltered as foreign capital outflows pick up due to the domestic crisis as well as rising U.S. interest rates. ** Five-year government bond yields have risen 30 basis points since the political crisis unfolded on Oct. 26, while yields on Sri Lanka’s dollar bonds due in 2022 have risen by more than a percentage point to 8.14 percent since the crisis began. ** The Colombo stock index rose 0.59 percent to 6,032.54 on Thursday. It had risen 1.5 percent last week, recording its first weekly gain in four. It gained 1.1 percent in November and has declined 5.3 percent so far this year. ** Stock market turnover was 533.3 million rupees on Thursday, less than this year’s daily average of 830 million rupees.

adaderana business
Share on Google Plus

About Unknown

Sri Lanka's most important news collector. We publish news from the trusted websites in the world.


Post a Comment