Sri Lanka bond yields down, stocks lower, Hunas up
Monday January 7, 2019 10:42
ECONOMYNEXT – Sri Lanka’s bond yields were marginally down in the first hours of trading on Monday, while stocks were down despite speculative trading in Hunas Falls Hotels Plc.
Twelve month Treasury bills were quoted around 10.70/80 percent Monday but no firm quotes in early trade, dealers said.
A bond maturing on 15.12.2021, was quoted at 11.25/30 percent Monday, slightly down from 11.28/33 percent Friday, dealers said.
A bond maturing on 15.07.2023, was quoted at 11.45/52 percent, down from 11.50/60 percent from Friday.
A bond maturing on 01.08.2026 bond was quoted around at 11.58/11.62 from Friday’s 11.60/65 percent, dealers said.
In money markets call money was 8.98/9.00 percent and gilt backed repos were around 8.98 bid with no offers.
On Friday banks borrowed 115 billion rupees from the overnight window at 9.0 percent from the central bank amid a liquidity shortage created by currency defence by the cenral bank. In addition to the spot market, the central bank has also defended the currency in forward markets through legacy and new swaps.
Stocks at the Colombo Stock Exchange were weaker in the first hour of trading, with the All Share Price Index down 0.08 percent, or 5.02 points to 6,062.68.
The more liquid S&P SL20 Index was down 0.01 percent, or 0.38 points to 3,105.37.
Share volumes traded were 1.4 million with a turnover of 20.6 million rupees, after the market closed on Friday with a 10-year record low turnover of 68.7 million rupees.
Buying in Anilana Hotels and Properties Plc drove nearly half the volumes, with the share up 16.17 percent.
There was selling pressure on Agstar Plc, Merchant Bank of Sri Lanka & Finance Plc and Renuka Holdings Plc shares.
Speculative buying in Hunas Falls Hotels ahead of a possible takeover saw the share rise 17.6 percent, or 23.20 rupees to 155 rupees in early morning trade, after gaining 21.40 rupees on Friday. (Colombo/Jan04/2019)