Sri Lanka rupee opens at new low, stocks gain 0.15-pct

ECONOMYNEXT- Sri Lanka rupee continues to be pressured opening at a new low against the US dollar Friday, as gilt yields edged higher and stocks gained 0.15 percent on buying interest in Distilleries, brokers and dealers said.

The rupee opened weaker at 160.85/90 rupees against the US dollar in two-way quotes in the spot market Friday, depreciating further from Thursday's closing of 160.75/85 rupees.

Currency pressure is expected to continue on import demand and slower export conversions and remittances inflows, dealers said.

Excess liquidity in money markets was also fuelling import demand, they said.

Overnight interbank surplus liquidity fell 4.34 billion rupees on Thursday to 25.30 billion rupees, but was higher compared to 10.29 billion rupees on 25 June.

Gilt yields edged higher in early trading in the secondary market for government bonds.

A five-year bond maturing in 2023 opened at 9.98/10.00 percent in two-way quotes, up from the previous day's closing of 9.92/97 percent.

A ten-year bond maturing in 2028 opened at 10.30/40 percent, up from the prevous day's 10.25/40 percent.

In equities, the Colombo All Share index opened 0.15 percent higher Friday, up 9 points to 6,064.76, and the S&P SL20 was down 0.09 percent, 2.84 points lower at 3,212.77.

Market turnover was 5.2 million rupees.

Distilleries opened 1.60 rupees higher at 21.50 rupees and Aitken Spence gained 1 rupee to 46 rupees.

Laugfs gas was up 1 rupee to 15.90 rupees.

John Keells Holdings opened 10 cents lower at 139.60 rupees and Dialog was down 10 cents to 13.60 rupees.

Commercial Bank was trading 40 cents lower at 120.60 rupees. (COLOMBO, 24 August 2018)

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