Rupee flat; shares up on Dialog buying
Sri Lanka’s rupee ended almost flat on Thursday as State banks
maintained market stability and traders stayed away, while shares edged
up led by Dialog Telekom , which analysts expect to report robust
profits next month.
The rupee closed at 113.40/113.50 per dollar, slightly firmer from
Wednesday’s close of 113.44/113.49, and edging away from an all-time
closing low of 113.57/113.62 hit on Sept. 18.
“One state bank bought dollars while another state bank sold
dollars,” said a currency dealer. “There was no significant activity
from importers and exporters — they might be waiting to see changes in
the rates.”
The Central Bank opened its restricted reverse repurchase agreement
window for a tenth day, pumping 6 billion rupees into the system to
counter a liquidity shortage after releasing 59.8 billion rupees during
the past nine days, dealers said.
The rupee has depreciated around 5.6 per cent so far this year, on
top of a 5 per cent fall in 2006.
Some analysts expect it to continue to weaken to as much as 118-120
per dollar by the end of the year. Others are eyeing 114 per dollar.
The six-month forward rate stood at 121.11/ 121.30 rupees per dollar.
The rupee is steadily weakening mainly due to a hefty trade deficit,
owing to costly fuel imports, and inflation, which quickened to 17.5 per
cent in September as measured on a 12-month rolling average — near 1994
highs.
The Colombo All Share index closed 0.45 percent firmer at 2,589.78
points, a rise of 11.53 points.
Market heavyweight Dialog Telekom closed 1.08 percent firmer at 23.50
rupees. The firm was likely to report healthy profit growth early next
month, said Inthicab Mohammed, research manager at Ceylinco
stockbrokers.
Conglomerate John Keells Holdings ended flat at 129.00 rupees a
share, while leading fixed line telephone operator Sri Lanka Telecom
also ended unchanged at 34.50 rupees.
“The market moved up mainly because of Dialog and retailers’ interest
on Touchwood shares,” said Geeth Balasuriya, assistant research manager
at HNB stockbrokers.
“A considerable interest in John Keells Hotels was seen in the latter
part of the day, after it announced plans to acquire three local
hotels.”
John Keells Hotels, a subsidiary of the conglomerate, announced
voluntary offers to acquire 100 percent of the issued shares of three
listed hotel companies under the Confifi group — Riverina Hotels Plc ,
Eden Hotels Lanka Plc and Confifi Hotel Holdings.
Turnover was 141.41 million rupees ($1.25 million), a fraction of
last year’s average daily turnover of 400 million rupees. Foreigners,
who were net buyers, purchased shares worth 23.17 million rupees.
The bourse is down by 14.1 per cent from life highs in mid February,
while it has dropped by 4.9 percent this year.
Interbank lending rates or call rates , fell to 18.68 per cent from
20.595 per cent on Wednesday, after rising as high as 25 per cent.
Reuters |
