ECONOMYNEXT – Sri Lanka’s rupee opened weak at 176.20/40 to the US dollar on Tuesday, while bond yields fell and stocks gained 0.57 percent on buying interest, market participants said.
The rupee closed at 175.90/00 to the greenback on Friday. Monday was a market holiday.
Bond yields fell in secondary market in dull trade, dealers said.
Yields have been falling, as banks, hit by bad loans, have been buying gilts instead of giving loans to customers.
A bond maturing on 15.12.2021 was quoted at 9.50/60 percent on Tuesday, falling from 9.65/75 percent at Friday’s close.
A bond maturing on 15.03.2023 was quoted at 9.95/10.05 percent, down from 10.10/20 percent.
A bond maturing on 15.03.2024 was quoted at 10.02/08 percent, falling from 10.25/30 percent.
A bond maturing on 01.08.2026 was quoted at 10.25/35 percent, falling from 10.50/57 percent.
A bond maturing on 15.01.2027 was quoted at 10.37/40 percent on Tuesday, down from Friday’s 10.58/63 percent.
A 10-year bond maturing on 01.05.2029 was quoted at 10.50/60 percent, falling from 10.70/75 percent.
In equities, Colombo’s All Share Index gained 30.00 points, up 5,289.71, in the first half-hour of trading and the S&P SL20 of more liquid stocks was higher at 1.52 percent or 37.16 points to 2,484.06.
The market turnover was 40 million rupees, with 28 stocks gaining and 11 declining.
Index heavy John Keells Holdings was up 4.00 rupees to 140.00 rupees, Sri Lanka Telecom was trading 1.70 rupees higher at 24.00 rupees and Sampath Bank gained 2.10 rupees at 142.00 rupees.
Dialog Axiata accounted for two thirds of the turnover, trading 10 cents up at 9.10 rupees a share.
The market is speculating that the country’s largest fund, the Employees’ Provident Fund is buying shares in Dialog, sold by foreign shareholders.(Colombo/May21/2019)