Sri Lanka bond yields rise on profit taking

ECONOMYNEXT – Sri Lanka’s rupee ended slightly stronger at 178.40/55 to the US dollar on Friday, while bond yields rose on profit taking, and stocks fell 0.52 percent, dealers and brokers said.

The rupee had gained up to 178.10/30 to the US dollar in trading in the morning session.
The rupee closed at 178.45/55 to the US dollar in the spot market on Thursday.
Sri Lanka raised 2.4 billion US dollars through an international sovereign bond Thursday evening, after receiving subscriptions of 7.5 billion US dollars.
Sri Lanka sold 1 billion US dollars of 5-year bonds at 6.85 percent and 1.4 billion US dollars of 10-year bonds  at 7.85 percent.
The bond sale was launched with price guidance of around 7.2 to 8.2 percent.
Treasury Secretary R H S Samaratunga had described the issuance as taking place in a limited borrowing space, as the government could not fully raise the cabinet- approved amount until the budget was passed. 
Dealers said the effect of the international sovereign bond issuance had hit the market on Thursday, when yields fell by around 15-20 basis points.
Over the past two weeks, yields had fallen by around 30-40 basis points, giving bond holders a good price to draw profits from, dealers said.
Yields edged up slightly on Friday morning, before rising further during the day, dealers said.
Twelve-month bills closed at 10.50/55 percent on Friday, up from 10.48/55 percent at Thursday’s close.
A bond maturing on 01.08.2021 ended at 10.61/69 percent, higher than the previous close of 10.57/62 percent. 
A bond maturing on 15.07.2023 closed at 10.80/87 percent, up from Thursday’s close of 10.70/73 percent. 
A 7-year bond maturing 01.08.2026 closed at 11.00/07 percent on Friday, up from 10.92/98 percent at Thursday’s close.
A bond maturing on 15.06.2027, closed at 11.08/15 percent,  higher than Thursday’s close of 11.00/07 percent. 
A bond maturing on 01.09.2028, ended at 11.17/25 percent, up from 11.10/20 percent at previous close.
At the Colombo Stock Exchange, the All Share Price Index ended at 5,722.25, down 30.10 points on Friday.
The more liquid stocks on the S&P SL20 Index were down 23.09 points at 2,859.59.
Market turnover was 2 billion rupees with high foreign participation. 
Foreign sales were 1.13 billion rupees and purchases of 1.3 billion rupees.
The All Share was weighed down by Ceylon Tobacco Company, which closed 24.60 rupees lower at 1,395 rupees per share, and Melstacorp, which fell 2.20 rupees to 40 rupees per share, an all-time low, brokers said.
The John Keells Holdings share fell 1.40 rupees to 155.10 rupees.
The Distilleries Company saw its share fall 40 cents to 15.10 rupees while Commercial Bank closed 1.80 rupees lower at 102 rupees per share. (Colombo/Mar08/2019)

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