S.Lanka rupee steady on intervention, lower dlr demand

By Shihar Aneez

COLOMBO, Nov 4 (Reuters) - Sri Lanka's rupee closed flat on
Tuesday as state bank intervention and low dollar demand from
importers helped the rupee stabilise, after a series of moves
by the central bank to keep the currency steady.

Shares on the Colombo Stock Exchange rose for a fifth
straight day to a two-week high, gaining on bargain-hunting.

The rupee LKR= closed unchanged at 110.00 per dollar. It
fell 1.8 percent and hit a 10-month low on Thursday after the
central bank allowed some depreciation, reversing course after
defending it at 108 since September.

"The rupee has stabilised after a number of moves from the
central bank," a currency dealer said. "Importers stayed away
from the market after the central bank's move had made imports
expensive. The moves also have curtailed panic buying."

Dealers said a state bank, which represents the central
bank, sold a limited quantity of dollars at 110.00 throughout
the day.

Central Bank Governor Ajith Nivard Cabraal on Monday said
the rupee was likely to stay near 110 a dollar and will neither
depreciate or appreciate significantly due to easing global
economic worries.

On Tuesday, the central bank rejected 35-month treasury
bonds and sold 277 million rupees worth 23-month T-bonds at a
weekly auction on Tuesday.[ID:nCOL331228].

It is the third time the bank in the last three weeks has
rejected bids at a treasury securities auction. In the previous
two auctions, the bank had said the rates being sought were too
high and has warned it will do it again.

On Tuesday, the call money rate CLIBOR edged up to 18.410
percent, from Monday's close of 18.325 percent.

For secondary market bond rates, please see <0#LKBMK=>.

The Colombo All-Share index .CSE rose 2.98 percent or
55.77 points to 1,928.68, its highest close since Oct. 20.
"Thin volumes of bargain hunting trades helped the market to
rise," Hussain Ghani, assistant director at Asia Securities,
said. "Retail investors chipped in after seeing attractive
price levels for short-term gains."

The bourse hit an over 3-½ year closing low on Oct. 28,
and is still down 24.1 percent so far this year.

Top conglomerate by market capitalisation, John Keells
Holdings JKH.CM closed up 6.25 percent at 68 rupees,
calculated on a weighted average. The conglomerate's buyback
scheme of one share to every 25 shares at 90 rupees started on
Tuesday.
Market heavyweight and Sri Lanka's top fixed-line phone
operator Sri Lanka Telecom SLTL.CM rose 3.13 percent to 41.25
rupees a share, while top mobile phone operator Dialog Telekom
DIAL.CM closed 3.57 percent firmer at 7.25 rupees a share.

Top listed private lender, Commercial Bank of Ceylon rose
4.62 percent to 96.25 rupees, while shares in Hatton National
Bank HNB.CM closed 3.41 percent firmer at 91 rupees.

Market turnover was 114.1 million rupees ($1.04 million),
around a quarter of last year's daily average of 400 million
rupees.
(Editing by Bryson Hull)