Sri Lankan index edged up on Wednesday, hitting its highest level in over six weeks, led by banks and diversified stocks on selective buying in some shares ahead of the presidential election later this week.
The main stock index was up 0.12 per cent or 9.27 points at 7,429.41 at 0738 GMT, its highest since November 21.
“People are collecting some shares and taking positions prior to the election. We expect some profit-taking here and there,’’ said a stockbroker asking not to be named.
The central bank had last week said that the economy would grow annually at 8 per cent between 2015 and 2020 after achieving an estimated growth of 7.8 per cent in 2014.
Turnover was 1.09 billion rupees ($8.27 million) at 0738 GMT, well above last year’s daily average of 1.42 billion rupees, stock exchange data showed.
The stock index had gained 23.4 per cent in 2014 after rising 4.8 per cent in the previous year. It has lost 3.5 per cent since November 19 when President Mahinda Rajapaksa announced his decision to hold a snap presidential election on January 8.
Rupee forwards
The rupee forwards traded weaker on Wednesday on importer dollar demand, while exporters stayed away hoping for further weakening of the currency, dealers said.
Four-day forwards, which were actively traded, were at 132.60/80 per dollar compared with Tuesday’s close of 132.45/50, dealers said.
There is importer dollar demand and the weak rupee is a clear refection of the global currencies, a dealer said.
Rupee forwards were maintained around 132.00 in December as the central bank defended the currency through moral suasion.
The spot currency was not traded on Wednesday.
Dealers said unusually high imports towards the end of 2014, amid lower interest rates and a stable exchange rate pressured the rupee.
The spot currency remained between 130.00 and 131.75 rupees throughout 2014, with the central bank defending it at both ends to ensure a stable exchange rate. It fell 0.3 percent for the year, Thomson Reuters data showed. ($1 = 131.7500 Sri Lankan rupees)