Asia stocks stutter as FBI probe of Clinton jolts markets

SINGAPORE, Oct 31 (Reuters) – Asian stocks got off to a shaky start on Monday after a renewed FBI probe of U.S. Democratic presidential candidate Hillary Clinton’s use of a personal email server sparked fresh tumult in markets, just days before the Nov. 8 presidential vote.

The Japanese yen, seen as a safe-haven in times of uncertainty, rose slightly against the U.S. dollar.

MSCI’s broadest index of Asia-Pacific shares outside Japan was off 0.2 percent in early trading on Monday. It is set to end the month down 2 percent.

Japan’s Nikkei slipped 0.6 percent, but remains poised for a monthly gain of 5.4 percent.

On Friday, Wall Street and the dollar closed lower, after FBI Director James Comey sent a letter to the U.S. Congress informing it that the agency is again reviewing emails related to the private server Clinton used when she was secretary of state.

Markets have tended to see Clinton as the candidate of the status quo, while there is greater uncertainty over what a victory for her Republican rival Donald Trump might mean for U.S. foreign policy, international trade deals or the domestic economy.

Comey had decided in July that the Federal Bureau of Investigation was not going to seek prosecution of Clinton for her handling of classified materials.

“There seems little doubt that a Trump victory would trigger selling in stock markets from current levels,” Rick Spooner, chief market analyst at CMC Markets in Sydney, wrote in a note. “This has traders nervous as they start the week assimilating fresh news on Hillary Clinton’s email problems.”

U.S. media reported on Sunday that the FBI has secured a warrant to examine newly discovered emails related to Clinton’s private server,

Trump had fallen in the polls for most of the past six weeks, but an ABC News/Washington Post poll released on Sunday showed Clinton with a statistically insignificant 1-point national lead on her Republican rival.

The dollar surged 0.7 percent against the Mexican peso on Friday and extended those gains by another 0.2 percent to 18.9982 peso early on Monday.

A Trump victory has been viewed as a key risk for the Mexican currency given his promises to clamp down on immigration and redraw trade relations with the country.

The dollar was little changed at 104.86 yen early on Monday after falling 0.4 percent on Friday. It remains up 3.4 percent for the month.

The euro retreated 0.2 percent to $1.0970 in early trade after jumping 0.9 percent on Friday. It is poised to end October with a 2.5 percent loss.

Adding to the list of potential market-moving events this week is a raft of PMI data out of several countries; central bank policy meetings, including Japan and Australia on Tuesday, the U.S. on Wednesday and the Bank of England on Thursday as well as U.S. October non-farm payrolls on Friday.

Oil prices extended their slide – driven by renewed oversupply concerns – and have surrendered most of the gains made in the first half of October. They are set to end the month with meagre gains.

The latest oil woes were prompted after non-OPEC producers failed to make any specific commitment to join the Organization of Petroleum Exporting Countries in limiting output to support prices on Saturday.

U.S. crude slid 0.5 percent to $48.44 a barrel on Monday, up 0.4 percent for the month, while global benchmark Brent retreated 0.5 percent to $49.44, up 0.8 percent in October.

 

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Government will bring a people's Budget: Ravi Karunanayake

Oct 31, 2016 (LBO) – Sri Lanka’s budget for 2017 on Nov 10 will be a people’s budget as it would incorporate ideas proposed from all corners of the country, the Finance Minister said in a statement.

“The Ministry of Finance has already received over 2200 proposals from the people. This also includes proposals from other sectors of the economy, trade unions; trade chambers corporate sectors, companies and the individual firms,” the finance ministry said.

Karunanayake said he had visited places such as Mavil Aru in Trincomalee, Polonnaruwa and Galle and several other districts.

Further the minister also had discussions with Trade union representatives and others who represent various sectors of the economy such as tourism, poultry industry, vehicle importers, trade and industry in Colombo and the provinces.

“For the first time in the history of budget making the finance ministry has obtained the services of academics to have a systematic survey on the needs of the people.”

Teams of academics from ten national universities recently handed over their findings of the surveys conducted at the Divisional Secretariat level island wide. These academics teams with the assistance of the Ministry of Finance had conducted systematic surveys on the economic needs of the people covering 332 DS divisions in the country with the aegis of respective Divisional Secretaries.

“The budget with the incorporation of the proposals from the people and the government policy of transforming the country into a manufacturing economy will have many surprises beneficial to all and the concessions given by way of price reduction of essential goods and services will continue unabated,” Karunanayake said.

Finance Minister said that all these proposals were being studied before finalizing the budget as the government has adopted a bottom up approach to make the budget a reality.

All these years the previous governments have been in the habits of adopting top bottom approach for budget making which was also considered imperative to maintain the Macro economic variables.

Karunanayake said the government has decided to discontinue the system of incremental budget allocation from this year and instead all ministries have been allocated funds on Zero based budget proposals put forward by the ministries in accordance with the government’s national economic priority plans.

Accordingly, all ministries had to submit their annual action plans before finalizing the allocations and they would be required to strictly adhere to and monitor implementation of the plan.

Financial allocations to all line ministries would be based on their action plans in order to achieve the government’s policy of generating one million job opportunities, enhance income levels, develop rural economies, ensure land ownership to rural and estate sectors, the middle class and government employees, and create a wide and a strong middle class without any restrictions.

 

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Excerpts of Sri Lanka COPE recommendations on bond issue

Oct 31, 2016 (LBO) – Sri Lanka’s Committee on Public Enterprises has made several recommendations to Parliament on last year’s controversial bond issue.

Excerpts of the recommendations, as published by the Sunday Times, are the following:

Evidence has been placed before the COPE, which gives rise to reasonable suspicion that former CB Governor Arjuna Mahendran made an intervention or, used pressure, in the transaction of TBs that took place on February 27, 2015, examined by the COPE.

Evidence placed before the COPE also gives rise to reasonable suspicion that, there was a lack of transparency in the manner in which the transactions took place and this, in turn, has damaged the credibility of the CB of Sri Lanka.

Also, the COPE observed that, one of the Primary dealers, Perpetual Treasuries, obtained massive financial profits in the sale of TBs.

Therefore:
In order to recommend penalties and other directives against CB officials and Institutions responsible for the transactions and, in order to recover the losses incurred by the public and government, the COPE emphasises that legal action be initiated against the persons and institutions responsible for the transactions.

A post-supervision system to ensure that penalties and other directives issued are implemented.

In order to prevent the recurrence of similar issues, the COPE recommends that necessary checks and balances are maintained, and other necessary steps taken.

To ensure the CB maintains the necessary checks and balances, and to ensure the post-supervisory steps are implemented, Parliament should directly intervene, as Parliament has the fundamental responsibility on public finance.

The COPE emphasises it is the responsibility of Parliament to recover the losses incurred by the government and to act under existing laws, and that, the CB and related institutions should give an assurance to Parliament that a suitable mechanism is implemented to prevent the recurrence of such incidents.

The COPE recommends that, a recognised institution with legal powers, should investigate and take necessary measures to prevent the recurrence of similar situations, in which the credibility and transparency of the CB was seriously affected by allowing a single institution– Perpetual Treasuries- gaining undue profit as a Primary dealer.

The Operation guide of the Public Debt Department which has not been updated to date, should be updated immediately, with mention that, State institutions should be given priority in raising funds through the sale of TBs.

Former CB Governor Arjuna Mahendran is directly responsible for the particular TB transaction, and the COPE recommends that legal action be taken against him and the relevant officials of the CB.

Excerpts from Footnotes:-

The 9.48 percent interest was determined by the CB interest rates and not determined independently based on market rates.

In the morning of February 27, 2015, the Operational Committee decided that, the regulation that, if a bank deposits money for more than three days in the CB, the interest rate will be reduced from 6.5% to 5%, was removed. Thereby, it was restored to 6.5%.

The time has been extended beyond 11 pm. for one buyer. That is for the HSBC, for Rs 100 million until 11.04.26 pm.

The evidence recorded shows that the CB called up Primary dealers on the previous day and checked with them about purchase of (TBs) around Rs 10 billion.

Perpetual Treasuries too received a telephone call. Perpetual Treasuries auctioned for Rs 3 billion at 12.5%, Rs 5 billion at 12.75% and Rs 5 billion at 13% and, shortly before the auction, instructions were sent via email to the Bank of Ceylon on February 27, 2015, at 10.48 am. The Bank of Ceylon sent out the bids at 10.57.22 am, 10.57.41 am and 10.57.57 am respectively to the CB. According to records, the HSBC bid was sent at 11.06 am.

The decision to increase the sum to be raised from Rs 1 billion to Rs 10 billion, was a decision taken based on a professional decision by a team, according to Chairman of the Tender Committee, P. Samarasiri.

According to the Superintendent of the Public Debt Department, the former CB Governor had not said “Do it”, but instead, had given the idea “Why don’t you go for 10?”. Even in the Auditor General’s report, it is mentioned that the former CB Governor had told Ms Seneviratne, “Why don’t you go for 10?” There is no other evidence contrary to that

There is no evidence that former CB Governor Arjuna Mahendran or, Deputy Governors Dr Nandalal Weerasinghe and Ananda Silva, made inquiries or, intervened, in the particular auction.

 

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Sri Lankan rupee weaker; remittances prevent steeper fall

Oct 31, 2016 (Reuters) – The Sri Lankan rupee traded weaker on Monday due to importer dollar demand, but the month-end inward remittances capped the fall, dealers said.

Rupee forwards were active, with one-week forwards trading slightly weaker at 148.30/40 per dollar compared with Friday’s close of 148.25/30.

“The month-end inward remittances are there, but rupee is trading weaker on importer (dollar) demand,” a currency dealer said, asking not to be named.

The central bank on Friday raised the spot reference rate by 50 cents to 147.40 per dollar from previous rate of 146.90 as higher importer dollar demand weighed on the currency while the moral suasion by the central bank prevented a steeper fall.

The spot rupee is usually managed by the central bank, and market participants use the forward market levels for guidance on the currency.

Officials from the central bank were not available for comment.

Dealers said foreign selling in government securities also put pressure on the currency.

Foreign investors have sold a net 16 billion rupees ($108.40 million) worth of government securities in the two weeks ended Oct. 26, data from the central bank showed.

Dealers said the market was waiting for a direction from the national budget, which is due on Nov. 10.

Dealers said the market had shrugged off a long-awaited economic statement by Prime Minister Ranil Wickremesinghe, who on Thursday said the government will introduce a lower tax regime and concessions on investments in its next budget to boost faltering investment.

Sri Lankan shares were firmer, with the benchmark Colombo stock index up 0.03 percent at 6,427.06 as of 0528 GMT. Turnover stood at 17.8 million rupees ($120,596.21).

 

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THE LANKA HOSPITAL CORPORATION - DIVIDEND ANNOUNCEMENT

THE LANKA HOSPITALS CORPORATION PLC Company ID: - LHCL Date of Announcement: - 31.Oct.2016 Rate of Dividend: - Rs. 1.00 per share / Interim Dividend Financial Year: - 2016 XD: - 09.Nov.2016 Payment: - 21.Nov.2016 Share Transfer Book Open

 

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Opinion: Budget 2017 expectations, unrealistic or achievable?

Oct 28, 2016 (LBO)- Gearing for the new budget in a few weeks time Finance Minister Ravi Karunanayake is optimistic about Budget 2017.

An equity buyout for Hambantota port is on the cards, and the second IMF tranche will be back on track, although continued support for SriLankan Airlines is likely, Karunanayake said, speaking to the Foreign Correspondents Association.

The previous budget was “created during an experimental stage’, but Karunanayake is positive that there will be no hiccups in the new budget.

But the main concern among many is the newly passed VAT and NBT act.

With the raised VAT and NBT figures, they expect to collect revenue of 15 billion rupees within the next 2 months, he said. Although in a previous statement to media, Karunanayake said that 1.5 billion needs to be raised in November and December 2016 and 10 billion rupees was expected to be raised within a year.

He is positive that the budget deficit target of 5.4% is achievable, and is confident of the 4.7% target for 2017, and eventually 3.5% in 2020. But, given that we overshot our target in 2015, it remains to be seen whether 5.4% is achievable.

Equity buyout for Hambantota Port

The idle assets of Sri Lanka such as the Hambantota port, is due for an 80% equity buy out in a PPP agreement with a Chinese company. The agreement is to be signed within the 1st week of November 2016 with the private party who is a ‘vibrant port operator,’ he said.

Currently the value added revenue earned from the Hambantota port is Rs. 300 Mn which is insufficient for debt servicing, but with the PPP agreement in place, sufficient funds will be received to retire the high end debt, while retaining the low interest rate debt currently in place.

Interest has been shown in the Mattala airport as well by 10 parties but this needs to be whittled down before a final selection is made.

Further support for SriLankan
Despite previous statements made that the national carrier Sri Lankan Airlines will be supported only until October 2016, Karunanayake said that they will not sell the airline just for the sake of selling.

There are 3 interested parties, 1 investment bank, 1 fund and 1 airline and the final decision will take time. Therefore the debt burden of Sri Lankan Airlines will impact budget 2017 as well.

In an attempt to reduce brain-drain, and to get higher remittances from overseas employment, a minimum wage rate is to be applied for workers seeking jobs overseas.

FDIs and Funding
Budget 2017 is expected to have plenty of incentives to attract FDI’s to the country with some innovative, non- conventional financing options in place (unique funding system), although a further sovereign bond issue is not completely off the table.

With the assurance of an inflow of FDI’s, Karunanayake is not worried about pressure on the rupee, as it will be managed although interest rates may see a hike.

IMF second tranche
With government revenue set to rise, the second IMF tranche is expected to be received within the next 2 weeks, which had been on hold until tax reforms were put in place. However Karunanayake has gone on record to state that budget decisions are not made or governed by the IMF.

While there is optimism about the new budget increasing government revenue, the question remains whether it will be sufficient? Debt due till April 2017 in sovereign bonds and other debt is $5.3 Bn while there is a further $3.3 Bn outstanding in swap facilities.

And since Sri Lanka now falls under the lower middle-income category, the concessional loan facilities have reduced and the non-concessional loans have increased from 4% in 2009 to 15% in 2016 (as of end May). Sri Lanka’s per capita debt has increased from Rs. 63,000 in the year 2000 to Rs. 4Mn in the year 2015.

While a stunning budget is expected to be released in the next few weeks, we can only hope it does not keep us awe struck for the wrong reasons.

 

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Sri Lankan rupee weaker; central bank's moral suasion caps fall

Oct 28, 2016 (Reuters) – The Sri Lankan rupee traded weaker on Thursday with the central bank raising the spot reference rate by 50 cents as higher importer dollar demand weighed on the currency, dealers said.

However, moral suasion by the central bank prevented a steeper fall, they added.

The central bank raised the spot reference rate to 147.40 per dollar from previous rate of 146.90.

Rupee forwards were active, with one-week forwards steady at 148.35/50 per dollar compared with previous day’s close of 148.40/50, due to month end inward remittances amid central bank’s moral suasion.

“Moral suasion kept the rupee forwards steady. Imports are higher and today we could see some inward remittances due to the month end,” a currency dealer said, asking not to be named.

The spot rupee is usually managed by the central bank, and market participants use the forward market levels for guidance on the currency.

Officials from the central bank were not available for comment.

Dealers said foreign selling in government securities also put pressure on the currency.

Foreign investors sold 8.79 billion rupees ($59.84 million) worth of government securities in the week ended October 19, data from the central bank showed.

Dealers said the market was waiting for some direction from the national budget due on November 10.

Dealers also said the market had shrugged off a long-awaited economic statement by Prime Minister Ranil Wickremesinge, who on Thursday said the government will introduce a lower tax regime and concessions on investments in its next budget to boost faltering investment.

Sri Lankan shares were weaker, with the benchmark Colombo stock index 0.21 percent weaker at 6,424.68 as of 0652 GMT. Turnover stood at 111.2 million rupees ($751,859.36).

 

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COMMERCIAL BANK OF CEYLON - DIVIDEND ANNOUNCEMENT

COMMERCIAL BANK OF CEYLON PLC Company ID:- COMB (Voting and Non-Voting) Date of Announcement:- 28.Oct.2016 Rate of Dividend:- Rs. 1.50 per share / First Interim Dividend Financial Year:- 2016 XD:- 08.Nov.2016 Payment:- 18.Nov.2016 Share Transfer Book Open

 

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Sri Lanka's 'doing business' rank down one notch to 110: World Bank

Oct 27, 2016 (LBO) – The World Bank says Sri Lanka has dropped one place in the “Doing Business ” rank to 110, over the past year, but the island has made progress in two reform areas: starting a business and protecting minority investors.

“The improvements, while important, were not enough to stop a decline in the country’s overall rank from 109 in 2016 to 110 in 2017,” the World Bank’s Doing Business Report 2017 said.

“This is not necessarily an indicator that the country has slipped down in rank, but is more a reflection that other peer economies have undertaken a larger number of reforms in the business environment during the same period.”

Idah Pswarayi-Riddihough the Bank country director for Sri Lanka and Maldives says the simplified processes will reduce the cost of doing business and can help to unleash entrepreneurship, which is needed to boost the economy.

“While Sri Lanka has taken positive steps in reforms, much needs to be done to enable the private sector to grow and to provide equal opportunities for all.”

A total of 11 reforms, making it easier to do business, were implemented by five of eight economies in South Asia in the past year.

This is significantly higher than the region’s annual average of nine reforms over the past five years. Pakistan is among the top 10 global improvers.

Over the past 12 months, it implemented a total of three reforms and saw its ranking progress from 148 to 144.

India also implemented reforms across multiple areas. In the past five years, Sri Lanka has implemented the highest number of Doing Business reforms in the region, with 12 reforms in total, followed by India with 10.

Gender component

Doing Business 2017: Equal Opportunity for All captures data revisions compared to previous year. Paying Taxes, Gender dimension and Protection of Minority Investors are new adjustments reflected in country rankings.

The Paying Taxes indicator is expanded this year to include post-filing processes—the processes that occur after a firm complies with its regular tax obligations. In particular, the indicator now measures the time it takes to comply with and obtain a value added tax (VAT) refund and comply with and complete a corporate income tax audit.

For the first time this year, Doing Business adds gender components to three indicators. The starting a business indicator now measures gender-specific procedures such as documents or permissions required to leave the home for work, obtain national identification or own a business.

The Registering Property indicator now measures whether unmarried men and women—as well as married men and women—have equal ownership rights to property. The Enforcing Contracts indicator now measures whether a woman’s testimony carries the same evidentiary weight in court as a man’s.

Three questions in the Protecting Minority Investors indicator are revised to measure whether all members must consent to add a new member, whether a management deadlock breaking mechanism exists, and whether members meet at least once a year in limited companies.

The report cites research that demonstrates that better performance in Doing Business is, on average, associated with lower levels of income inequality, thereby reducing poverty and boosting shared prosperity.

The full report and accompanying datasets are available at www.doingbusiness.org

 

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Asia shares slip after Apple results weigh, dollar off highs

TOKYO, Oct 27 (Reuters) – Asian shares edged down on Thursday after disappointing earnings from technology giant Apple dragged on Wall Street, while the dollar remained shy of this week’s nearly nine-month highs.

Besides Apple, results and forecasts from some other major U.S. companies also weighed on U.S. markets overnight. The S&P 500 and the Nasdaq Composite both skidded, though a standout performance by Boeing lifted the Dow Jones industrial average.

MSCI’s broadest index of Asia-Pacific shares outside Japan as well as Tokyo’s Nikkei stock index were both down 0.2 percent in early trading.

Expectations for a year-end rate hike by the Federal Reserve remained intact, and bolstered the greenback. In recent weeks, market participants have been pricing in more than a 70 percent chance that the U.S. central bank would hike interest rates in December, according to CME Group’s FedWatch program.

Later on Thursday, market participants will parse the latest data on U.S. durable goods, jobless claims and pending home sales.

“These reports are not expected to have a dramatic impact on the dollar but with USD/JPY eyeing 105, stronger reports could give the pair the push that it needs to make a run for this key level,” wrote Kathy Lien, managing director at BK Asset Management.

U.S. growth figures scheduled for release on Friday could reinforce or temper Fed hike expectations.

The dollar added 0.1 percent to 104.61 yen, moving back toward this week’s high of 104.87 yen touched on Tuesday, its highest level since late July.

The euro was steady at $1.0907, while the dollar index stood at 98.610, within sight of Tuesday’s nearly nine-month high of 99.119.

Crude oil futures nursed losses after settling down more than 1 percent on Wednesday even after a surprise drawdown in U.S. crude inventories, as traders remained cautious that OPEC would be able to cut production come late November.

U.S. crude edged up 0.1 percent to $49.25 a barrel, while Brent crude was nearly flat at $49.99.

Spot gold was 0.1 percent lower at $1,265.96 an ounce

 

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Sri Lanka cabinet approves capital market strategy 2016-2020

Oct 27, 2016 (LBO) – Sri Lanka’s cabinet has given the nod for the government to follow a five-year capital market strategy in order to attract investors, issuers, institutions and mediators, a statement said.

“Although the capital market plays a major role in economic development and sustainable development in rising economies in the world Sri Lanka has not used its potential,” a statement on approved cabinet decisions said.

“Hence, the capital market of Sri Lanka should be converted into an efficient and interesting place for share issuers, investors, institutions, and mediators.”

The proposal was put forward by the Prime Minister Ranil Wickremesinghe to follow the Capital Market Strategy 2016-2020 that proposes regulatory and development actions to be followed in future.

A 250 million dollar loan from the Asian Development Bank in two tranches would be utilized for this purpose, a media report said.

 

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Sri Lankan rupee weaker; moral suasion caps fall

Oct 27, 2016 (Reuters) – The Sri Lankan rupee traded weaker on Thursday on importer demand for the U.S. currency with moral suasion by the central bank preventing a fall in both the spot currency and spot-next, dealers said.

Rupee forwards were active, with the one-week trading at 148.15/30 per dollar at 0538 GMT compared to the previous day’s close of 148.10/25.

Dealers said moral suasion prevented the spot-next trading below 147.70/148.10 forcing one-week forwards to trade actively. On Wednesday, the spot-next ended at 147.90/148.10.

The spot rupee was quoted at 146.90/95 per dollar, but there were hardly any trades.

“The dollar demand is there. The central bank’s moral suasion prevented the spot-next trading below 147.70 and it forced dealers to trade in one-week forwards,” a currency dealer said, asking not to be named.

The spot rupee is usually managed by the central bank and market participants use the forward market levels for guidance on the currency.

Officials from the central bank were not available for comment.

Dealers said foreign selling in government securities also put pressure on the currency.

Foreign investors sold 8.79 billion rupees ($59.84 million) worth of government securities in the week ended Oct. 19, data from the central bank showed.

Dealers said the market was waiting for some direction from the national budget due on Nov. 10.

Sri Lankan shares were steady, with the benchmark Colombo stock index 0.01 percent weaker at 6,434.14 as of 0540 GMT. Turnover stood at 32 million rupees ($217,170).

 

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Sri Lanka to obtain USD75mn credit of SDR from World Bank

Oct 26, 2016 (LBO) – Sri Lanka is to obtain 75 million US dollars as credit of Special Drawing Rights (SDR) from the International Development Association of the World Bank for the social safety nets project.

The project which will be implemented from 2017 – 2022 has been designed to improve the equity, efficiency and transparency of island’s social safety net programs for the benefit of the poor and vulnerable.

Loan negotiations are expected to be finalized in early next month and the Finance Minister will enter in to a financing agreement on behalf of the government.

The loan is repayable in 24 years with a grace period of 5 years and a fixed interest rate of 2.73 percent annually on the withdrawn credit balance will be applicable.

The loan disbursement will be in USD and the amount of USD disbursed will be determined based on the exchange rate that prevails between USD and SDR at the time of disbursement.

 

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Sri Lankan rupee steady in lean trade; stocks weak

COLOMBO, Oct 26 (Reuters) – The Sri Lankan rupee traded steady on Wednesday in a dull market as investors were reluctant to take positions, a day after a state bank sold dollars, capping the fall in the domestic currency amid seasonal importer greenback demand, dealers said.

Dealers said moral suasion by the central bank on Tuesday discouraged trading in the spot currency market.

Rupee forwards were active, with the spot-next trading steady at 147.95/148.10 per dollar at 0653 GMT.

The spot rupee was quoted at 146.90/95 per dollar, but there were hardly any trades.

“It’s the seasonal importer demand, but very dull market after yesterday’s moral suasion and state bank intervention,” a currency dealer said, asking not to be named.

The spot rupee is usually managed by the central bank, and market participants use the forward market levels for guidance on the currency.

Officials from the central bank were not available for comment.

Dealers also said foreign selling in government securities also put pressure on the currency.

Foreign investors sold 8.79 billion rupees ($59.84 million) worth of government securities in the week ended October 19, data from the central bank showed.

Dealers said the market was waiting for some direction from the national budget due on November 10.

Sri Lankan shares were marginally weak, with the benchmark Colombo stock index 0.07 percent lower at 6,432.71 as of 0655 GMT. Turnover stood at 228.8 million Sri Lankan rupees ($1.55 million). ($1 = 147.7000 Sri Lankan rupees)

 

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Asia stocks slide after Wall Street losses, oil drops on glut concerns

SINGAPORE, Oct 26 (Reuters) – Asian shares tumbled in early trade on Wednesday, following in the footsteps of Wall Street, which pulled back on disappointing earnings, while the dollar inched down from a seven-month high and oil prices slid.

MSCI’s broadest index of Asia-Pacific shares outside Japan slipped 0.3 percent.

Japan’s Nikkei lost 0.2 percent, while South Korea’s KOSPI dropped 0.8 percent and Australia fell 1.4 percent.

U.S. stocks ended Tuesday down between 0.3 and 0.5 percent, as results and forecasts from companies in sectors including housing and consumer products missed expectations.

Apple too dragged the market lower, as iPhone sales, which were better than expected, nevertheless continued a declining trend. The company also forecast slimmer-than-expected profit margins over the coming holiday season, even as it projected record sales.

The U.S. declines followed a mixed performance in Europe, with British shares closing up 0.45 percent, Germany flat after hitting its highest level this year, and France down 0.3 percent. The broader European STOXX 600 fell 0.3 percent.

“We had a rally (on Monday) and haven’t been able to sustain it, due to weaker-than-expected numbers from some names,” said Peter Jankovskis, co-chief investment officer at OakBrook Investments in Lisle, Illinois. He called the day’s earnings report a “mixed bag” for stocks.

The dollar index, which tracks the greenback against a basket of six global peers, was steady at 98.726 early on Wednesday.

It hit its highest level since Jan. 2 on Tuesday as traders saw a more than 78 percent chance of an interest rise hike by the Federal Reserve in December, according to CME Group’s FedWatch data.

The dollar slipped 0.1 percent to 104.1 yen after touching the highest level in almost three months on Tuesday.

Sterling retreated 0.1 to $1.2180 on Wednesday.

On Tuesday, it slumped to as low as $1.2082, its weakest in 2 1/2 weeks after Bank of England (BoE) Governor Mark Carney said there were limits to the central bank’s ability to ignore the effect of the currency’s slide on inflation. His comments, ahead of a policy meeting next week, doused expectations for more monetary stimulus in Europe.

The euro, which slid to a 7 1/2-month low of $1.0851 on Tuesday, recovered to end the session flat, and was trading little changed at $1.0887 early on Wednesday.

The stronger dollar and a report that showed U.S. inventories grew nearly three times as much as forecast weighed on oil prices.

U.S. crude fell 1.4 percent to $49.29 on Wednesday. It is down 3.1 percent this week.

Brent futures retreated 1.1 percent to $50.25, bringing this week’s losses to 3 percent.

“Basically, the glut continues and demand is not coming back,” said Phil Davis, a trader at PSW Investments in Woodland Park, New Jersey. “I don’t want to read too much into it but the fact of the matter is it certainly doesn’t support $50 oil.”

 

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Sri Lanka targets budget deficit of 4.4-pct for 2017: Minister

Oct 26, 2016 (LBO) – Sri Lanka plans on reducing it’s budget deficit to 4.4 percent in 2017 and curbing its total expenditure by around 10 percent, the State Minister of Finance said.

“We propose to cut the budget deficit up to 4.4 percent and curb expenditure through reducing the government expenditure and better financial management,” Lakshman Yapa Abeywardana, the state minister of finance told reporters in Colombo, Tuesday.

“To increase the states income we will bring proposals to increase our export earning and also earnings from tourism. Total expenditure will be reduced by around 10 percent to 3.33 trillion rupees. ”

Showing a document to reporters he said that the government planned to cut it’s defense budget by 8.5 percent, higher education and highways by a fifth, and health by 9.5 percent.

“The finer details of these can only be revealed in the budget that is due in November,” he said.

This year’s total expenditure is estimated at 3.7 trillion rupees.

 

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Danish delegation to look at infrastructure in Sri Lanka

Oct 25, 2016 (LBO) – A business delegation is due from Denmark to look at investment opportunities in Sri Lanka in in energy, infrastructure and water.

“The delegation is interested in exploring the Sri Lankan market and strengthening ties with the Sri Lankan business community,” a statement from the European Chamber of Commerce of Sri Lanka said.

“The main areas of interest for the delegation will be energy, infrastructure and water.”

The Chamber said the delegation will comprise of 15 leading Danish companies and will be in the island from the 1st of November to the 4th of November 2016.

 

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Asia shares track Wall St higher, US dlr firm

SYDNEY, Oct 25 (Reuters) – Asian shares edged higher on Tuesday while the dollar stood firm as upbeat U.S. earnings boosted Wall Street and factory surveys in the United States and Europe boasted their best readings so far this year.

MSCI’s broadest index of Asia-Pacific shares outside Japan inched up 0.1 percent with most components yet to trade.

Australian stocks added 0.5 percent and futures pointed to an opening gain of around 0.8 percent for Japan’s Nikkei helped by a softening yen.

Wall Street took encouragement from upbeat corporate results and the Dow rose 0.46 percent, while the S&P 500 gained 0.47 percent and the Nasdaq or 0.91 percent.

Over one third of U.S. companies have now reported and 80 percent have beaten market expectations. Another third of the S&P 500 components are scheduled to report earnings this week, including heavyweights Apple, Alphabet, Amazon and Boeing.

Merger and acquisition activity added an extra fizz in the wake of AT&T Inc’s $85.4 billion bid for Time Warner Inc , though the deal seemed destined to face stringent scrutiny from regulators.

Aiding risk sentiment was the Markit survey of U.S. manufacturing which climbed to a one-year top of 53.2. Business activity in the euro zone also expanded at the fastest pace this year so far in October and firms raised prices at the sharpest rate in more than five years.

The better news led investors to nudge up the probability of a December rate hike from the Federal Reserve to around 74 percent <0#FF:> and pressured Treasury prices.

It also lifted the U.S. dollar to a nine-month high against a basket of major currencies at 98.846. The dollar remained firm on the yen at 104.28 while the euro struggled at $1.0870.

One mover was the Canadian dollar which rebounded from a seven-month low after Bank of Canada Governor Stephen Poloz said the decision on whether to cut interest rates again was not one to take lightly.

The comments countered recent speculation about an imminent easing and nudged the U.S. dollar down to C$1.3352 from a peak at C$1.3398.

In commodities, oil prices dipped on news of the impending restart of Britain’s Buzzard oilfield and Iraq’s wish to be exempted from OPEC production cuts.

Brent was down 30 cents at $51.48 a barrel while U.S. crude lost 9 cents to $50.43.

 

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Sri Lanka's FIU and Inland Revenue to share info

Oct 25, 2016 (LBO) – Sri Lanka’s Central Bank says its Financial Intelligence Unit (FIU) has entered into a memorandum of understanding with the Department of Inland Revenue to exchange information on money laundering and terrorist financing.

The MoU will facilitate investigations and prosecutions in terms of the provisions of the Financial Transactions Reporting Act, No. 6 of 2006 (FTRA).

“Money laundering and terrorist financing are internationally and domestically connected financial crimes which could threaten the stability of global economic and financial system,” a statement said.

“With the increase of tax related crimes all over the world, the Financial Action Task Force (FATF), the international policy setter on AML/CFT, recommends countries to incorporate tax crimes as predicate offence to money laundering.”

In this background, domestic coordination and cooperation between the FIU and the Department of Inland Revenue would help strengthen existing AML mechanism in Sri Lanka in relation to tax evasion.

Kalyani Dahanayake, Commissioner General, Department of Inland Revenue and H. Amarathunga, Director, FIU signed the MOU on behalf of the respective institutions in the presence of Indrajit Coomaraswamy, the Governor of the Central Bank of Sri Lanka, who is also the Chairman of the Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) National Coordinating Committee.

The FIU has already entered into similar MOUs with Sri Lanka Customs and Department of Immigration and Emigration while arrangements are being made to sign MOUs with other relevant domestic government agencies for the above purpose soon.

 

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Sri Lankan rupee weaker on importer dollar demand; stocks up

Oct 25, 2016 (Reuters) – The Sri Lankan rupee edged down on Tuesday due to importer dollar demand and a lack of exporter sales, but selling of the greenback by a state bank capped further fall in the domestic currency, dealers said.

They added the moral suasion by the central bank discouraged trading in the spot currency market.

Rupee forwards were active, with the spot-next trading at 148.05/15 per dollar, weaker than its previous close of 147.95/148.05.

The spot rupee was quoted at 146.90/95 per dollar, but there were hardly any trades.

“The (importer dollar) demand is there and the rupee is under pressure as there are not much of inflows,” a currency dealer said, asking not to be named.

“A state bank was seen selling dollars, but we are not sure if it was on the instructions of central bank or it was selling its own positions.”

The spot rupee is usually managed by the central bank, and market participants use the forward market levels for guidance on the currency.

Officials from the central bank were not available for comment.

Dealers also said foreign selling in government securities also put pressure on the currency.

Foreign investors sold 8.79 billion rupees ($59.84 million) worth of government securities in the week ended October 19, data from the central bank showed.

Dealers said the market was waiting for some direction from the national budget due on November 10.

Sri Lankan shares trading firmer, with the benchmark Colombo stock index 0.2 percent firmer at 6,431.28 as of 0630 GMT. Turnover stood at 49.9 million rupees ($337,162.2).

 

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Sri Lanka delayed VAT debate in Parliament tomorrow

Oct 25, 2016 (LBO) – Sri Lanka’s much delayed Value Added Tax (VAT) amendment bill under the equitable taxation principle will be debated in parliament, Wednesday, the Finance Ministry said in a statement.

“The newly proposed VAT system is very simple and transparent,” Ravi Karunanayake, Minister of Finance said in the statement.

VAT was introduced to Sri Lanka in 2002 as a goods and services tax at the rate of 10 percent and by 2006 it was increased to 20 percent.

Meanwhile, the Supreme Court has informed the Speaker that the VAT amendment bill complies with the Constitution, Deputy Speaker Thilanga Sumathipala informed Parliament earlier, Tuesday.

 

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WATAWALA PLANTATIONS - DIVIDEND ANNOUNCEMENT

WATAWALA PLANTATIONS PLC Company ID: - WATA Date of Announcement: - 25.Oct.2016 Rate of Dividend: - Rs. 0.65 per share / Interim Dividend Financial Year: - 2016/2017 XD: - 03.Nov.2016 Payment: 11.Nov.2016 Share Transfer Book Open

 

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Sri Lanka *market update* ASPI close down, Lack of investor activity

The market closed today posting a turnover of LKR 301,293,313 (USD 2.0mn) with the indexes moving down. ASPI closed at 6418.34 down 29.2 points (-0.45%) while the more liquid SP SL20 index closed at 3586.96 down -7.63 points (-0.21%). There were no crossings recorded during the day. Banking and Finance sector was the highest contributor towards the turnover at LKR 120mn followed by Manufacturing and Diversified sector generating LKR 65mn and LKR 36mn. Foreign investors were net buyers of LKR 62mn worth of shares, while their participation in terms of revenue decreased to 22.2% (previous day 49.0%). Estimated net foreign buying topped in COMB.N LKR 34.6 (USD 235k). Estimated net foreign selling topped in HNB.N LKR 5.2mn (USD 35k). Retail activity was witnessed in counters such as LIOC.N, CFVF.N and JKH.N

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Sri Lanka rupee down on importer dollar demand

Oct 24, 2016 (Reuters) – The Sri Lankan rupee edged down on Monday due to dollar demand by importers, but moral suasion by the central bank discouraged trading in the spot currency market, said dealers.

Rupee forwards were active, with the spot-next at 147.90/95 per dollar as of 0801 GMT, down from its previous close of 147.60/70.

The spot rupee was quoted at 146.90/95 per dollar, but there were hardly any trades.

“We see the central bank’s instruction on the sport rupee. But the spot-next is traded without any intervention,” a currency dealer said, asking not to be named.

The spot rupee is usually managed by the central bank, and market participants use the forward market levels for guidance on the currency.

Officials from the central bank were not available for comment.

Dealers said the market was waiting for some direction from the national budget due on Nov. 10.

Sri Lankan shares fell, with the benchmark Colombo stock index 0.3 percent weaker at 6,428.07 as of 0805 GMT. Turnover stood at 263.2 million rupees ($1.79 million).

 

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Asian stocks subdued, dollar hovers near 9-month high

TOKYO, Oct 24 (Reuters) – Asian stocks were subdued early on Monday after Wall Street’s sluggish performance at the end of last week, while the dollar hovered near nine-month highs as fresh comments from a Federal Reserve official boosted bets of a rate hike by year-end.

MSCI’s broadest index of Asia-Pacific shares outside Japan inched down 0.1 percent.

Japan’s Nikkei stood little changed, while South Korea’s Kospi gained 0.4 percent.

On Friday in Wall Street, the S&P 500 and the Dow were little changed and the Nasdaq advanced as a record day for Microsoft and earnings from McDonald’s helped offset a fall in energy and healthcare shares.

“It will be something of a hiatus week, given that next week brings the BoJ, Fed and BoE meetings…however there is a heavily back-loaded run of data in the U.S., Japan and Eurozone, and there will be a deluge of US and indeed European and Asian corporate earnings,” wrote Marc Ostwald, strategist at ADM Investor Services International.

Global markets are bracing for a slew of data this week including consumer prices data from Japan and some euro zone countries, third quarter U.S. GDP and a number of purchasing managers’ index (PMI) data from developed economies.

In currencies, the dollar index was steady at 98.657, not far from 98.813, its highest since Feb. 3 struck on Friday.

The U.S. currency received a boost last week as the euro slid after the European Central Bank doused talk it was contemplating tapering its monetary easing.

The dollar was also supported by hawkish comments from Fed officials including New York Fed President William Dudley and higher expectations that Hillary Clinton will win the U.S. presidential election, which have increased bets that the Fed will raise rates in December.

The dollar was flat at 103.890 yen. The euro was nearly unchanged at $1.0883 after falling on Friday to $1.0859, its lowest since March 10.

The Australian dollar was down 0.1 percent at $0.7605 .

Crude oil prices slipped on concerns supply will outweigh demand, with U.S. crude down 0.4 percent at $50.64 a barrel.

The contracts had risen about 0.8 percent on Friday on hopes that Russia and OPEC would reach a price agreement, but worries of oversupply have been a persistent drag on the market.

Latest data showed that U.S. oil rig count posted the first double-digit rise since August.

Brent crude was down 0.35 percent at $51.60 a barrel.

 

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Acceptance of e-documents an urgent matter: Sri Lankan companies

Oct 24, 2016 (LBO) – Sri Lanka’s trading companies say acceptance of electronic documents is a matter that requires urgent attention.

The Import Section of the Ceylon Chamber of Commerce in partnership with Verité Research held a round-table discussion on “Acceptance of Electronic Documents: One small step for the government, one giant leap for businesses” at the Chamber premises on the 18th of October.

“The discussion that took place saw an emphatic union in the opinions of all stakeholders on the importance of identifying and resolving the existing bottlenecks towards implementation of e-signatures without further delay,” a statement said.

“One of the key bottlenecks that hamper successful implementation of a paperless trading platform is the non-acceptance of electronic documents due to the perceived inability to accept electronic signatures in situations where a signature is required for processing.”

The discussion featured key stakeholders from both leading private sector organizations and the various government institutions responsible for critical nodes in the trade process.

The discussion was based on findings of Verité Research regarding the benefits of the acceptance of electronic documentation facilitated via the acceptance of electronic signatures in government trade related processes.

The event, chaired by Dinesh de Silva, Chairman of the Import Section of the Chamber, sought to create a discussion between the private sector and the government on the growing gap in trade efficiency and competitiveness between Sri Lanka and its regional counterparts.

This efficiency is due to cumbersome trade processes and the low level of Information and Communication Technology (ICT) integration.

Sri Lanka, traditionally a more efficient and low cost alternative to its South Asian competitors in terms of trade and logistics, has continued to steadily lose ground as a result.

The recent efforts to introduce a paperless trading platform to enhance efficiency of cross border transactions has had limited impact due to a lack of consensus and initiative among stakeholders.

The objective of the discussion was to understand the current status, bottlenecks and the way forward with regard to facilitating the acceptance of electronic documents by relevant government agencies.

The discussion concluded with the consensus that both public and private stakeholders have a role to play in remedying the non-acceptance of electronic documents and electronic signatures.

The Import Section together with Verité Research plans to create awareness of electronic signatures among key stakeholders and the public, towards facilitating a successful implementation and adoption of electronic documents as the default standard in key trade related processes.

 

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LANKA WALLTILES - DIVIDEND ANNOUNCEMENT

LANKA WALLTILES PLC Company ID: - LWL Date of Announcement: - 24.Oct.2016 Rate of Dividend: - Rs. 2.00 per share / Interim Dividend Financial Year: - 2016/2017 XD: - 02.Nov.2016 Payment: 11.Nov.2016 Share Transfer Book Open

 

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HATTON NATIONAL BANK - CORPORATE DISCLOSURE

https://cdn.cse.lk/cmt/upload_cse_announcements/1601477310681_.pdf

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World Bank raises 2017 forecast for crude oil to USD55 per barrel

Oct 21, 2016 (LBO) – The World Bank is raising its 2017 forecast for crude oil prices to 55 US dollars per barrel from 53 per barrel following OPEC’s preparation to limit production.

Energy prices, which include oil, natural gas and coal, are projected to jump almost 25 percent overall next year, a larger increase than aid anticipated in July as members of the Organization of the Petroleum Exporting Countries (OPEC) prepare to limit production after a long period of unrestrained output, the World Bank said issuing a statement.

The revised forecast appears in the World Bank’s latest Commodity Markets Outlook.

Oil prices are expected to average 43 US dollars per barrel in 2016, unchanged from the July report.

“We expect a solid rise in energy prices, led by oil, next year,” said John Baffes, senior economist and lead author of the Commodity Markets Outlook.

“However, there is considerable uncertainty around the outlook as we await the details and the implementation of the OPEC agreement, which, if carried through, will undoubtedly impact oil markets.”

A modest recovery is projected for most commodities in 2017 as demand strengthens and supplies tighten.

Metals and minerals prices are expected to rise 4.1 percent next year, a 0.5 percentage point upward revision due to increasing supply tightness.

Zinc prices are forecast to rise more than 20 percent following the closure of some large zinc mines and production cuts in earlier years. Gold is projected to decline slightly next year to 1,219 US dollars per ounce as interest rates are likely to rise and safe haven buying ebbs.

 

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Asia stocks slip as stronger dollar weighs on crude oil prices

TOKYO, Oct 21 (Reuters) – Asian stocks were mostly lower on Friday as the dollar climbed to seven-month highs against a basket of currencies and dragged down crude oil prices, cooling investor risk appetite.

The greenback was boosted by a fall in the euro after the European Central Bank shot down talk it was contemplating tapering its monetary easing – sending the common currency to its lowest since March.

MSCI’s broadest index of Asia-Pacific shares outside Japan was down 0.3 percent.

South Korea’s Kospi lost 0.4 percent and Australian stocks shed 0.1 percent, weighed down by a retreat in energy shares. Singapore fell 0.4 percent while Shanghai added 0.3 percent.

Japan’s Nikkei rose 0.3 percent, brushing a six-month high, as the yen weakened against the dollar.

U.S. stocks ended a choppy session on Thursday slightly lower as investors digested the latest round of earnings, with a sharp drop in telecoms offset by gains in healthcare.

The ECB left its ultra-loose monetary policy unchanged on Thursday but kept the door open to more stimulus in December, with ECB President Mario Draghi dousing recent market speculation that the central bank may begin tapering its 1.7 trillion euro asset-buying programme.

“The European Central Bank removed a source of immediate risk for traders by revealing that it did not discuss tapering its QE program at this month’s meeting,” wrote Ric Spooner, chief market analyst at CMC Markets.

“Decisions are being deferred until December pending the outcome of research – meaning that meeting will be a key focus for markets.”

The dollar index touched 98.541, its highest since early March.

The euro was down 0.3 percent at $1.0902 after seeing a seven-month trough of $1.0897.

The dollar was up 0.2 percent at 104.145 yen adding to overnight gains of 0.5 percent.

Sterling slipped 0.1 percent to $1.2237, taking in stride comments by European Council President Donald Tusk that British Prime Minister Theresa May had confirmed that Brexit talks would be triggered by end-March 2017.

China’s offshore yuan fell to its lowest level in six years against the broadly stronger dollar.

U.S. crude futures were down 0.4 percent at $50.41 a barrel. The contract lost more than 2 percent on Thursday as the dollar’s surge prompted profit-taking on a rally that sent U.S. crude to 15-month highs midweek. Brent crude lost 0.3 percent to $51.22 a barrel.

A stronger greenback tends to increase the purchase cost for non-U.S. buyers of commodities like crude oil and gold, which are denominated in the dollar.

Spot gold was down 0.2 percent at $1,263.50 an ounce, although it was on track for a 1 percent gain on the week.

 

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Sri Lanka central bank considers revamping primary auctions

Oct 21, 2016 (LBO) – Sri Lanka’s Central Bank is considering revamping the Primary Auction system for government securities, sources said.

The proposed system would overhaul the auction bidding process and introduce non-competitive bidding so as to create a level playing field.

The move likely follows heavy profits made by one primary dealer from government securities. COPE is expected to release its report on controversial bond auctions held in coming days.

 

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Sri Lankan rupee steady; importer demand offsets exporter dollar sales

Oct 21, 2016 (Reuters) – The Sri Lankan rupee was trading steady on Friday, with dollar demand by importers offsetting conversions of the U.S. currency by exporters, said dealers.

Rupee forwards were active, with the spot-next at 147.45/55 per dollar as of 0701 GMT, little changed from its previous close of 147.45/50.

The spot rupee was quoted at 146.90/95 per dollar, but was hardly traded.

The spot rupee is usually managed by the central bank, and market participants use the forward market levels for guidance on the currency.

“Importer demand was there, but one exporter selling offset the demand. Still, the rupee is under downward pressure because of the seasonal demand,” said a currency dealer, asking not to be named.

Dealers said the market was waiting for some direction from the national budget scheduled to be announced on Nov. 10.

Sri Lankan shares rose, with the benchmark Colombo stock index 0.05 percent firmer at 6,446.54 as of 0708 GMT. Turnover stood at 346.5 million rupees ($2.35 million).

 

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Sri Lanka *market update* ASPI close up, crossings dominate turnover

The market closed today posting a turnover of LKR 1,151,322,721 (USD 7.8mn) with the indexes moving in the same direction. ASPI closed at 6447.53 up 5.17 points (+0.08%) while the more liquid SP SL20 index closed at 3594.59 up 1.42 points (+0.04%). Crossings accounted for 60% of the turnover with four crossings in HHL (LKR 206mn; USD 1,399k), two in DIAL (LKR 241 mn; USD 1,641k), one in PAP (LKR 225mn; USD 1,530k) and one in WATA (LKR 20mn; USD 136k). Diversified sector was the highest contributor towards the turnover at LKR 343mn followed by Telecom and Power & Energy sector generating LKR 269mn and LKR 227mn. Foreign investors were net buyers of LKR 233.8mn worth of shares, while their participation in terms of revenue increased to 49.0% (previous day 31.8%). Estimated net foreign buying topped in HHL.N LKR 206.4 (USD 1403k). Estimated net foreign selling topped in DIAL.N LKR 50.5mn (USD 343k). Retail activity was witnessed in counters such as TKYO.X, AEL.N and JKH.N

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PANASIAN POWER - CORPORATE DISCLOSURE

https://cdn.cse.lk/cmt/upload_cse_announcements/2351477050474_.pdf

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Sri Lankan rupee edges down on importer dollar demand, foreign bond sale

COLOMBO, Oct 20 (Reuters) – The Sri Lankan rupee edged down on Thursday on importer dollar demand and as foreign investors sold bonds in the absence of central bank intervention, said dealers.

Rupee forwards were active, with the spot-next at 147.45/55 per dollar as of 0646 GMT, compared with its previous close of 147.40/50.

The spot rupee was quoting at 146.90/95 per dollar, but was hardly traded. It was steady last week after two weeks of losses.

The spot rupee is usually managed by the central bank, and market participants use the forward market levels for guidance on the currency.

“We see both importer dollar demand and foreign selling in local bonds,” said a currency dealer, asking not to be named. “There is a bit of uncertainty with the budget coming up next month. So all are waiting for some firm direction.”

The government’s national budget is scheduled to be announced on November 10.

The central bank has been buying dollars from the market to accumulate reserves to meet targets set by the International Monetary Fund under a $1.5-billion loan deal, dealers said.

Officials at the central bank were not available for comments.

Dealers said they expected the rupee to remain under pressure due to seasonal imports.

Sri Lankan shares were steady, with the benchmark Colombo stock index up 0.02 percent at 6,445.84 as of 0649 GMT. Turnover stood at 152.6 million rupees ($1.04 million).

 

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Asian stocks ride US momentum, oil near 15-month high

SINGAPORE, Oct 20 (Reuters) – Asian stocks advanced on Thursday, propelled by strong U.S. earnings and oil prices near a 15-month high, as the third and final U.S. presidential debate before the Nov. 8 election got underway.

MSCI’s broadest index of Asia-Pacific shares outside Japan rose 0.25 percent. Japan’s Nikkei extended gains to 0.9 percent.

China’s CSI 300 increased 0.2 percent, and Hong Kong’s Hang Seng index climbed 0.6 percent.

In the final debate between Republican presidential candidate Donald Trump and Democrat Hillary Clinton, which began at 0100 GMT, the former is trying to reverse the momentum in an election that polls show is tilting away from him.

Trump has been damaged recently by several accusations of groping women – which he denies – and concerns about his claims that the election will be rigged against him.

“One of the six topics is the U.S. economy, and any clarification of policy in this area could influence trading,” Michael McCarthy, chief market strategist at CMC Markets in Sydney, wrote in a note. “Secondly, a clear win for either candidate is important. Markets are likely to buy Clinton and sell Trump.”

The Mexican peso inched down against the dollar on Thursday during the debate, slightly shrinking this week’s gains.

The U.S. dollar rose 0.2 percent to 18.548 peso on Thursday, but remains down 2.4 percent this week.

With Trump’s criticism of Mexican migration and trade putting the U.S’s southern neighbour at a disadvantage if he wins, a stronger Mexican peso reflects market perceptions of a lower chance of a Trump win.

Overnight, the S&P 500 index and the Dow Jones Industrial Average closed up 0.2 percent, after Morgan Stanley posted a better-than-expected quarterly profit to round out a string of solid results from big U.S. banks.

With 70 companies in the S&P 500 having reported earnings through Wednesday morning, 80 percent have topped earnings expectations. Third quarter earnings are now expected to increase 0.5 percent, according to Thomson Reuters I/B/E/S, which would be the first quarter of growth in five.

“We’re up because the (earnings) numbers are so great, the forward guidance is great and the banks just knocked it out of the park,” said Ken Polcari, Director of the NYSE floor division at O’Neil Securities in New York.

Energy shares also contributed to the gains on Wall Street, as oil prices jumped after a surprisingly large inventory drop of 5.2 million barrels, compared with a forecast for a 2.7-million barrel build. It was the sixth week of declines in seven weeks.

U.S. crude slipped 0.3 percent to $51.44 on Thursday, after surging 2.6 percent to close at $51.60 in the previous session. It earlier touched $51.93, the highest since July 2015.

Brent crude was little changed at $52.64 on Thursday, after climbing 1.9 percent on Wednesday.

The dollar rose 0.15 percent to 103.62 yen on Thursday after falling 0.4 percent on Wednesday.

The euro was flat at $1.0974, ahead of the European Central Bank’s policy meeting on Thursday.

Investors are focused on whether ECB President Mario Draghi will give any indications that the central bank will begin tapering its bond purchase program when it meets on Thursday.

 

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Sri Lanka *market update* ASPI down, Turnover low due to lack of investor participation

Activities in the Colombo bourse continued to remain dismal recording thin volumes and turnover levels. The benchmark fell 2.03 points (0.03%), while S&P SL20 index also closely followed suit depreciating 3.88 points (0.11%) respectively. The benchmark index has declined 92.41 points or 1.41% since the beginning of the month while eroding LKR 39bn from the market. The cable manufacturer ACL came under limelight today, making entrance to the top turnover and volume lists. The stock closed flat at LKR 64.00 during today’s trading session. NDB and CTC managed to secure next slots in the turnover list aided by negotiated deals. Negotiated deals accounted for ~15% of today’s turnover. Low valued stocks in the likes of BLUE.X, HPFL emerged among highest gainers for the day, while ATL recorded largest daily losses. Foreign investors aligned on to the buying side today, generating a net foreign inflow of LKR 39mn. ACL reported the highest net inflow, while LION recorded the highest net outflow.

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UNDP allocates USD 38mn to support dry zone communities in Sri Lanka

Oct 20, 2016 (LBO) – The United Nations Development Programme announced the commencement of a 38.1 million dollar project under the Green Climate Fund to improve agriculture-based livelihoods of farmers in the dry zone.

“The project will allow assistance to be provided to 770,000 people in three river basins – Malwatu Oya, Yan Oya and Mi Oya – who are vulnerable to climate change,” UNDP said in a statement.

“Around 1.2 million people living in the same areas will indirectly benefit from the project.”

UNDP will work with a number of government institutions and it will be implemented from 2017 to 2024.

Further to the grant from the GCF, the Government of Sri Lanka will leverage Government co-financing amounting to US 14 million dollars for this project to address several financial, technical, and institutional barriers related to achieving integrated water management to improve agriculture-based livelihoods of smallholder farmers in the Dry Zone.

In addition to Sri Lanka’s proposal, the Board approved 8 other proposals. This is the first time that Sri Lanka has received funding from the Green Climate Fund.

 

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PRINT CARE - DIVIDEND ANNOUNCEMENT

PRINT CARE PLC Company ID: - CARE Date of Announcement: - 20.Oct.2016 Rate of Dividend: - Rs. 0.60 per share / Interim Dividend Financial Year: - 2016/2017 XD: - 31.Oct.2016 Payment: 08.Nov.2016 Share Transfer Book Open

 

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Asian shares manage muted cheer for China growth

SYDNEY, Oct 19 (Reuters) – Asian shares held early gains on Wednesday as a barrage of Chinese data confirm the economy had stabilised on the back of government spending and a hot housing market, even if worries about debt continue to mount.

The initial reaction was muted with few fireworks in the figures and Shanghai stocks edged up 0.2 percent.

MSCI’s broadest index of Asia-Pacific shares outside Japan added 0.4 percent, on top of a jump of 1.4 percent on Tuesday.

Australian shares firmed 0.3 percent, while Japan’s Nikkei rose 0.17 percent.

Chinese gross domestic product (GDP) expanded 6.7 percent in the year to September, exactly as forecasted. Private investment remained subdued with government spending and property strong.

Other data showed retail sales rising a solid 10.7 percent and urban investment 8.2 percent, but industrial output disappointed by growing only 6.1 percent.

Figures out on Tuesday showed Chinese banks extended a surprisingly strong 1.22 trillion yuan ($181 billion) of new loans in September, capping a record nine-month lending spree.

Much of that growth has been driven by a booming housing market, that authorities are now trying to clamp down on without triggering a price collapse.

Sentiment had got an early lift from Wall Street which benefited from encouraging corporate earnings. The Dow ended Tuesday up 0.42 percent, while the S&P 500 added 0.62 percent and the Nasdaq 0.85 percent.

Of the 52 S&P 500 companies that have reported results to date for the third quarter, 81 percent had earnings that topped average analyst estimates, according to forecasts collated by Thomson Reuters I/B/E/S.

One company seemingly disappointing investors was Intel , which slid 5.4 percent after the bell despite beating expectations on its earnings.

POUND UP AMID BREXIT CONFUSION

A report on U.S. consumer prices showed underlying inflation moderated slightly in September to 2.2 percent, leading the market to slightly pare back bets on a December rate hike.

Fed fund futures imply around a 65 percent probability of a move, down from 70 percent.

Federal Reserve Chair Janet Yellen said last week the U.S. central bank could allow inflation to run above its target.

U.S. Treasury yields dipped, in line with their UK counterparts, amid confusion on whether parliament will have to ratify Britain’s exit from the European Union.

British lawmakers are seen as less inclined to take a hard line on Brexit than Prime Minister Theresa May.

The news headlines caught the market very short of sterling and left the pound up at $1.2302, after a rally of 1 percent on Tuesday.

The dollar was steady on the yen at 103.82, after edging back from 104.20 the previous session. Against a basket of currencies it dipped 0.1 percent to 97.763.

The euro remained vulnerable at $1.0990 ahead of Thursday’s meeting of the European Central Bank where some investors wager President Mario Draghi will push back against talk of a tapering in its asset buying.

In commodity markets, oil prices extended gains as an industry group’s data showed an unexpected draw in U.S. crude inventories last week.

Brent crude was quoted up 49 cents at $52.17 a barrel, while U.S. crude added 53 cents to $50.82.

 

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Sri Lanka Central Bank resolves four insolvent institutions

Oct 19, 2016 (LBO) – Sri Lanka’s Monetary Board says it has approved repayments to depositors and investors in four insolvent financial institutions.

The Monetary Board approved repayment of depositors of three finance companies, The Standard Credit Finance Ltd., City Finance Corporation Ltd. and Central Investments and Finance PLC, and legitimate investors in government securities-linked investments in Entrust Securities PLC.

The Monetary Board on Oct 14 made these decisions in the context of protecting the public trust in the financial system, the central bank said in a statement.

The three companies got into a chronic financial positions in 2008 and 2009 due to fraud and mismanagement of funds and these companies did not have assets to pay off deposits.

All restructuring efforts made by the Central Bank, from time to time, could not produce envisaged results as those who managed these companies failed to arrange an infusion of new capital.

“As a result, these Department of Supervision of Non-Bank Financial Institutions companies became insolvent and were out of business since then,” a statement said.

The Entrust Securities PLC, a company with a primary dealer license to trade government securities, got into a chronic liquidity and insolvency crisis during latter part of 2015 as a result of fraudulent use of funds placed by customers for investment in government securities, the statement said.

The Central Bank on January 4, 2016 suspended the Board of Directors of the Entrust and vested its operations in the National Saving Bank to protect the investors.

“The Monetary Board reviewed the lack of progress so far and took cognizance of the fact that there was no further room to revive these companies to enable them to repay depositors and investors in the foreseeable future.”

“Given the long-delay involved so far, the Monetary Board approved the company resolution plans submitted by the Department of Supervision of Non-banking Financial Institutions to repay deposits and investments annually commencing from 2017 over a reasonable period of time with a fair interest rate during this repayment period.”

In the case of the three finance companies, repayment will cover 4,868 million rupees of nearly 11,878 depositors. In the case of the Entrust, investments secured with government securities amounting to 3,100 million belonging to 107 investors will be settled in the coming weeks.

In respect of unsecured investments in the Entrust amounting to 8,508 million belonging to 24 individuals and entities, government securities will be allocated and be repaid under the repayment plan to be implemented with the managing support of the Seylan Bank PLC.

The Central Bank will complete the required administrative procedures and communicate details to all those depositors and investors, the statement said. Once the repayment plan is legally finalized, those companies will be dealt with through applicable laws for liquidation.

“The Monetary Board is of the view that this is the only option that now remains as there are no assets in these companies and no investors have been willing to revive these companies and repay above depositors and investors.”

As part of the resolution plans, the Central Bank will set up a new Enforcement Division in the Department of Supervision of Non-bank Financial Institutions to institute legal action against directors and managers who “have been responsible for the fraud and misappropriation of funds” to recover such funds from them.

In the case of the Entrust, the law enforcement authorities, in association with the Central Bank, have already initiated legal actions.

The Enforcement Division will also introduce a routine procedure to take legal action against parties who have committed similar fraudulent practices in existing companies, in the event such instances are detected by the examination staff.

Further, action will be taken to address lapses in the Central Bank and to strengthen regulatory and supervisory mechanisms on a priority basis to ensure the safety and soundness of existing institutions.

However, it is important to stress that the regulation and supervision do not mean a guarantee for each and every deposit and investment made by the public in banks and financial institutions, the statement said.

Those who make such deposits and investments and those who undertake businesses based on these funds are primarily responsible for their business decisions regarding prudent management of their funds.

“In fact, almost all funds placed in the above distressed companies have been mobilized through unauthorized financial products. Even large depositors and investors have been negligent in not undertaking the normal due diligence on risks and return, despite being sufficiently knowledgeable and skillful to do so.”

The responsibility of the Central Bank is only to provide an external safeguard through regulation and supervision to the extent permitted in law while facilitating institutions to carry on their businesses essential for the economy and general public in a safe and sound manner in a stable financial system, the statement added.

“Therefore, all those who are stakeholders to these resolution plans are kindly requested to co-operate with the Central Bank in order to end this long-standing issue in the public interest. In the event of non-cooperation, the Central Bank will have no option but to reluctantly permit these companies to be wound up under the law.”

 

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CENTRAL INVESTMENTS & FINANCE PLC & ENTRUST SECURITIES PLC - PRESS RELEASE ISSUED BY THE DEPARTMENT OF SUPERVISION OF NON-BANK FINANCIAL INSTITUTIONS OF CENTRAL BANK OF SRI LANKA

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LOTUS HYDRO POWER - DIVIDEND ANNOUNCEMENT

LOTUS HYDRO POWER PLC Company ID: - HPFL Date of Announcement:- 19.Oct.2016 Rate of Dividend:- Rs. 0.50 per share / Second Interim Dividend Financial Year:- 2016/2017 XD:- 28.Oct.2016 Payment:- 08.Nov.2016 Share Transfer Book Open

 

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Asian stocks lifted by firmer oil prices; dollar steady

HONG KONG, Oct 18 (Reuters) – Asian stocks crept up on Tuesday thanks to a rebound in oil prices and the dollar consolidated recent gains although underlying risk appetite was cautious on concerns over capital outflows and weak data, especially from China.

Special focus will be on China’s B Share market, which was trading up around 0.8 percent on Tuesday after tumbling more than 6 percent on Monday on concerns of extended yuan weakness.

MSCI’s broadest index of Asia-Pacific shares outside Japan gained 0.5 percent in early trade. Australia’s benchmark index was up 0.4 percent while Hong Kong shares were poised to open higher.

“The Hong Kong markets should find some support around current levels though the weak outlook from the telecom and the property sector and continued concerns of yuan weakness will prevent any sharp gains,” said Alex Wong, a portfolio manager at Ample Capital with $100 million in assets under management.

As campaigning for the U.S. presidential elections enters its home stretch and concerns about the Chinese economy deepen after last week’s weak trade data, risk aversion is broadly on the rise – forcing investors to cut positions after a strong rally in risky assets in the third quarter of 2016.

Daily portfolio flows to emerging markets declined sharply last week with the seven-day moving average declining to its lowest level since a surprise Chinese currency devaluation in August 2015, according to data from Institute of International Finance.

“It’s been an incredibly quiet start to the week as most currencies remain rangebound but don’t let this sense of calm fool you as markets may be poised to explode,” said Stephen Innes, a senior trader at FX broker OANDA, referring to a multitude of macro-economic risks on the horizon.

Adding to the headwinds for emerging markets is the growing likelihood of a U.S. rate increase in December which has lifted 10-year U.S. Treasury yields by 25 basis points so far this month and boosted the dollar.

Wall Street ended down as lower oil prices weighed on energy shares. Stock futures were flat in Asian trade.

Major currencies were confined in broad trading ranges on the back of soggy U.S. data and the absence of fresh triggers.

“Rangebound trading continues, with the 104 level heavy for the dollar-yen,” said Kaneo Ogino, director at foreign exchange research firm Global-info Co in Tokyo. “It’s just short-term guys, playing in the market.”

The dollar index, which tracks the greenback against six major rivals, slipped 0.1 percent to 97.7, after rising as high as 98.169 in the previous session, its highest level since March 10.

Still, some risk indicators in the market were flickering green such as the Australian dollar which was up around 0.6 percent at $0.7669, while oil prices rose on hopes the market may not be as oversupplied as some analysts believe.

International benchmark Brent crude was up 0.4 percent while U.S. West Texas Intermediate (WTI) edged 0.5 percent higher.

Safe-haven gold was firm around the $1250 per ounce level as growing risk aversion encouraged buyers, halting a 6 percent fall over the last few weeks.

 

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Sri Lankan rupee falls on importer dollar demand

COLOMBO, Oct 18 (Reuters) – The Sri Lankan rupee fell on Tuesday on importer dollar demand in the absence of central bank intervention, said dealers.

Rupee forwards were active, with the spot-next at 147.20/30 per dollar as of 0752 GMT, compared with its previous close of 147.00/05.

The spot rupee was quoted at 146.90/95 per dollar, but hardly traded. It was steady last week after two weeks of losses.

The spot rupee is usually managed by the central bank, and market participants use the forward market levels for guidance on the currency.

“There was importer (dollar) demand and traders were reluctant to trade spot below 146.90 because the central bank (last week) prevented its trading below this level. But the central bank was not seen today,” said a currency dealer, asking not to be named.

The central bank has been buying dollars from the market to accumulate reserves to meet targets set by the International Monetary Fund under a $1.5-billion loan deal, dealers said.

Officials at the central bank were not available for comments.

Dealers said they expected the rupee to remain under pressure due to seasonal imports.

Sri Lankan shares were lower, heading for a seventh straight fall, with the benchmark Colombo stock index down 0.06 percent at 6,448.60 as of 0757 GMT. Turnover stood at 255.9 million rupees ($1.75 million).

 

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LEE HEDGES (SHAW) - SUB-DIVISION OF SHARES 1 for 5

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New opportunities for Sri Lankan companies in India

Oct 17, 2016 (LBO) – There are new opportunities for Sri Lankan companies in India, with several internal changes going on in the country, an official of a visiting Indian business delegation said.

“Within India, there are so many economic changes that could be advantageous for Sri Lanka. What is important is that this is also a new opening for Lankan industries and SMEs,” said Shreekant Somany, governing council member of the Confederation of Indian Industry (CII), in Colombo.

A CII delegation held discussions with Minister of Industry and Commerce Rishad Bathiudeen and ministry officials earlier this month. Somany is also the Managing Director of Somany Ceramics Ltd, one of the top five tile firms in India.

Keen to spur the economy, India has been reducing non-tariff barriers and barriers to trade with its neighbors in recent years.

“There is new interest and vigour in India with regard to Sri Lanka. The devolution of funds going to Indian states from the centre which was only two percent before has increased to more than 40 percent of tax collected by the centre now sent to states,” he said.

“There is new competition among federal states to access these, which opens door for Lankan companies to engage with Indian states in a new platform in trade and investment.”

Among the Indian corporates in the delegation were the Indian process efficiency and energy conservation giant Forbes Marshall Limited, infrastructure construction and project management multinational IL&FS Engineering and Construction, the road and highway surfacing giant Elsamex SA, and sectoral leaders such as Taylor Rubber Ltd.

The Indian industry and biz-led, not-for-profit CII has more than 8,000 members from Indian multinationals, corporates and SMEs and is a leading policy influencer and reference point on overall Indian SMEs, multinationals and industry.

It has additional 200,000 member firms as well. CII is present in nine overseas destinations-China, Australia, Bahrain, Egypt, France, Germany, Singapore, UK, and USA. CII also has institutional partnerships with 320 counterpart organizations in 106 countries.

 

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Sri Lanka exports, imports decline; BOP in surplus

Oct 17, 2016 (LBO) – Sri Lanka’s exports fell 4.4 percent to 891.2 million US dollars in July, while imports also fell at a faster 6.6 percent to 1,432.8 million US dollars from a year earlier, official data showed.

The trade gap shrank 10 percent to 541.6 million US dollars from a year earlier.

Exports

The Central Bank said the subdued performance in agri and industrial exports, owing to lower international commodity prices and lower domestic supply, mainly contributed to exports decline.

Export earnings from tea dropped by 14.8 percent to 108 million US dollars in July 2016, due to lower demand, particularly from Russia and Middle-Eastern countries, although tea exports to Iran increased in comparison to July 2015.

The Central Bank said Earnings from export of spices declined significantly by 31.8 percent mainly due to the poor performance of pepper as a result of low domestic supply.

Export earnings from petroleum products decreased by 24.7 percent during the month owing to the combined effect of lower bunkering quantities and average bunkering prices.

Earnings from sea food exports to the EU grew by 19.9 percent mainly as a result of the removal of the fish ban imposed by the EU on Sri Lanka, with effect from end June 2016.

Earnings from textiles and garments exports which account for around 48 percent of total export earnings grew by 3.0 percent to 426 million US dollars, due to higher garment exports to the EU and non-traditional markets such as Canada, China, Australia and the UAE.

On a cumulative basis, earnings from exports during the first seven months of 2016 contracted by 5.6 percent to 5,999 million US dollars mainly due to reductions in export earnings from transport equipment, petroleum products, tea and spices.

The leading markets for merchandise exports of Sri Lanka during the first seven months of 2016 were the USA, UK, Germany, India and Italy accounting for about 53 percent of total exports.

Imports

The Central Bank said a significant decline in expenditure on vehicle imports, followed by fuel and wheat imports, contributed largely to this reduction.

Reflecting the impact of policy measures adopted by the government to curtail vehicle imports, the expenditure on personal motor vehicles declined by 63.7 percent.

Importation of motor cars, hybrid electric vehicles, motor cycles, buses, agricultural tractors and auto-trishaws declined significantly during the month.

Import expenditure on fuel declined by 18.6 percent to 142 million US dollars during the month mainly due to the drop in average import prices of crude oil and coal together with the significant reduction in import volumes of refined petroleum products.

In line with the drop in oil prices in the international market, the average import price of crude oil declined to 46.10 US dollars per barrel in July 2016 from 50.95 US dollars per barrel in the previous month and 60.49 US dollars per barrel in July 2015.

Workers’ remittances declined by 4.4 per cent to 572.8 million US dollars in July 2016 from 599.3 million US dollars in July 2015.

BOP Position

During the first seven months of 2016, the overall BOP is estimated to have recorded a surplus of 356.0 million US dollars, compared to a deficit of 1,229.6 million US dollars recorded during the corresponding period of 2015.

 

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Sri Lankan rupee steady for third session; stocks down

Oct 17, 2016 (Reuters) – The Sri Lankan rupee was steady for a third straight session on Monday as dollar demand from importers offset exporter sales of the U.S. currency in the absence of central bank intervention, dealers said.

The spot rupee was steady at 146.90/95 per dollar at 0633 GMT.

However, dealers continue to expect the rupee to weighed down by seasonal imports.

“The currency will be under downward pressure due to seasonal imports until mid-December, and then we might see it settling with exporter sales and remittances,” a currency dealer said, asking not to be named.

The spot rupee is usually managed by the central bank, and market participants use the forward market levels for guidance on the currency.

The spot rupee was steady last week after two weeks of losses.

The central bank has been buying dollars from the market to accumulate reserves to meet targets set by the International Monetary Fund under a $1.5-billion loan deal, dealers said.

Officials at the central bank were not available for comment.

Sri Lankan shares were down, heading for a sixth straight session fall with the benchmark Colombo stock index was 0.2 percent weaker at 6,469.41 as of 0643 GMT. It fell below a key psychological barrier of 6,500 on Thursday. Turnover stood at 85 million rupees ($580,720).

 

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INDO MALAY, SELINSING, GOOD HOPE, SHALIMAR (MALAY) - REPURCHASE OF SHARES

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Asia stocks, dollar edge up on China inflation data relief

TOKYO, Oct 14 (Reuters) – Asian stocks and the dollar bounced on Friday, erasing some losses from the previous day, as stronger-than-expected Chinese inflation data eased some concerns about the health of world’s second-biggest economy.

MSCI’s broadest index of Asia-Pacific shares outside Japan was up 0.4 percent after dropping 1.1 percent on Thursday, when weak Chinese export numbers hit global equities, stopped a rise in U.S. yields and halted the dollar’s advance.

The index was headed for a loss of 2.1 percent on the week.

Chinese data again set the tone on Friday, with producer prices unexpectedly rising in September for the first time in nearly five years, while consumer inflation also beat expectations. The producer price increase will be good news for Beijing as it struggles to reduce a mountain of corporate debt.

South Korea’s Kospi added 0.5 percent and Australian stocks were up 0.1 percent. Shanghai dipped 0.2 percent while the Hang Seng rose 0.3 percent.

Japan’s Nikkei was flat after weaving in and out of the red. It looked set for a 0.3 percent weekly loss as investors braced for upcoming earnings reports.

“Until new catalysts emerge, investors will likely monitor both U.S. earnings and Japan Inc’s earnings,” said Kazuhiro Takahashi, an equity strategist at Daiwa Securities in Tokyo.

Overnight, the Dow fell 0.3 percent and Nasdaq shed 0.5 percent, led by falls in financial shares and the weak Chinese trade numbers.

The dollar index edged up 0.1 percent to 97.610. It had risen to a seven-week high against a basket of other major currencies earlier in the week on growing expectations of a December interest rate hike by the Federal Reserve.

The greenback gained 0.1 percent to 103.860 yen.

It had advanced to a 2-1/2-month peak of 104.635 on Thursday before sliding to 103.340 after the Chinese trade data. It was on track to gain 0.8 percent against the yen on the week.

The euro slipped 0.1 percent to $1.1046 after pulling back from a 2-1/2-month low of $1.0985 on Thursday on the back of the dollar’s broad retreat. The common currency was en route for a 1.4 percent weekly loss.

Investors will have another chance to gauge whether the world’s biggest economy is ready for tighter monetary policy through U.S. indicators due later including September retail sales and the University of Michigan consumer sentiment report.

The markets will also tune into speeches by Fed Chair Janet Yellen and Boston Federal Reserve President Eric Rosengren for hints about the timing of the next interest rate hike.

Elsewhere in currencies, the pound dipped 0.1 percent to $1.2239. It was on track to lose 1.7 percent this week.

Sterling kept well above the 31-year trough below $1.1500 struck last Friday during its flash crash as some fears of a “hard Brexit” ebbed, but it remained under pressure as the road to Britain’s exit from the European Union was seen to be strewn with obstacles.

The Singapore dollar hovered a near seven-month low as an unexpected third quarter contraction kept alive prospects of monetary easing after the central bank maintained its current policy.

The Thai baht rose more than one percent against the dollar, supported by hopes for a calm reaction to the death of Thailand’s King Bhumibol Adulyadej on Thursday.

The Thai prime minister had asked businesses to keep investing and traders to maintain their holdings and not “dump” shares.

Crude oil extended gains after bouncing overnight on a U.S. government report showing hefty draws in diesel and gasoline.

U.S. crude was up 0.3 percent at $50.57 a barrel, having gained about 1.5 percent so far this week.

 

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