Tuesday June 18, 2019

Sri Lanka stocks fall 1.21-pct , rupee lower

Sep 25, 2018 17:18 PM GMT+0530 | 0 Comment(s)

ECONOMYNEXT – Sri Lanka stocks closed sharply lower Tuesday down 1.21 percent despite low volumes on selling in index heavy stocks like Ceylon Tobacco, Hemas Holdings and Sri Lanka Telecom, as gilt yields edged higher and the rupee weakened against the US dollar, brokers and dealers said.

The spot US dollar closed at around 168.85/169.05 levels, market participants said.

Colombo's All Share index closed 1.21 percent lower, down 71.32 points to 5,833.58, and the S&P SL20 of more liquid stocks was 1.24 percent lower, down 37.47 points to 2,979.29.

Volume was low on dull investor sentiment, brokers said.

Equities have declined 8.41 percent so far in 2018.

Market turnover was 297.56 million rupees on 136 stocks declining during the day against 20 that gained.

Ceylon Tobacco (down 20 rupees to 1,355 rupees), Hemas Holdings (down 3.80 rupees to 85.30 rupees) and Sri Lanka Telecom (down 1.20 rupees to 20 rupees) contributed to the benchmark index decline.

John Keells Holdings closed 1.40 rupees at 128.10 rupees and Colombo Leasing and Finance was down 30 cents to 2.50 rupees.

There was a single crossing, or off-market negotiated trade, in Sampath Bank for 35.7 million rupees. The stock closed 1.60 rupees lower at 237 rupees.

Net foreign selling was 60.9 million rupees, down from selling of 359.9 million rupees the previous day.

Foreign selling in Sampath Bank was 41 million rupees, followed by 20 million rupees in John Keells Holdings, according to Asia Securities.

The Sri Lanka rupee closed weaker at 168.85/169.05 rupees against the US dollar in the spot market Tuesday. The US dollar closed Friday at 168.30/70 rupees.

During the day, the Central Bank injected 59 billion rupees into the banking system through term reverse repo auctions to clear a liquidity shortfall amid currency pressure, market participants said. 

Gilt yields edged higher in the secondary market for government securities amidst low volumes, dealers said.

A five-year bond maturing in 2023 closed at 10.65/70percent, up from the previous day's closing of 10.58/65 percent.

A seven-year bond maturing in 2025 ended at 10.73/85 percent, edging higher from 10.70/80 percent the previous close.

A ten-year bond maturing in 2028 closed at 10.75/11.00 percent, up from percent the previous close. (COLOMBO, 25 September 2018)


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