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Sri Lanka bond yields steady, rupee weaker

ECONOMYNEXT- Sri Lanka’s bond yields were largely unchanged ahead of a bill auction and the rupee was slightly weaker on Wednesday as Sri Lanka repaid a billion US dollar international sovereign bond, while stocks were down, dealers said.

The rupee was quoted at 182.35/50 to the US dollar, slightly weaker than Monday’s close of 182.20/30 to the dollar.
Tuesday was a holiday, when Sri Lanka had to repay a billion dollar sovereign loan.
However, the Bank of China has offered a loan of 300 million US dollars to Sri Lanka which could be extended up to 1 billion US dollars, which has countered the sovereign bond repayment and balanced sentiment in government securities, a dealer said.
On January 09, the central bank said it will be receiving 400 million US dollars through a swap with the Reserve Bank of India, with another 1 billion US dollars requested.
The liquidity short in money markets was around 76 billion rupees, with overnight call money rate at around 8.97/9 percent and repo rates around 8.95 percent with no offers.
One year bills were quoted at 10.70/78 percent, up slightly from 10.68/75 ahead of a Treasury Bill auction later in the morning where the state debt department will issue 26 billion rupees in fresh securities.
A bond maturing on 15.12.2023, which was first auctioned a week earlier was quoted at 11.35/40 percent on Wednesday from Monday’s 11.35/39 percent.
A 6-year bond maturing on 15.03.2025 was quoted around at 11.50/57 percent, slightly wider from 11.50/55 percent on Monday.
A bond maturing on 01.08.2026 was quoted at 11.57/60 percent, narrower from the previous close of 11.55/60 percent.
The All Share Price Index of the Colombo Stock Exchange was down 0.27 percent or 16.04 points to 5,964.98 in the first half hour of trading.
The more liquid stocks in the S&P SL20 Index was up 0.14 percent to 3,045.06.
Market turnover was 33.2 million rupees, with nearly 700,000 shares being traded.
Selling pressure was seen on Ceylon Cold Stores with the share down 6.67 percent, or 50 rupees to 700 rupees.
Orient Finance was the most active, driving around a third of the market trade volumes, with the share up 50 cents to 14.80 rupees. 
MTD Walkers was also active, up 1.40 rupees to 12.50 rupees per share, while East West Properties was up 50 cents to 14.20 rupees per share. (Colombo/Jan16/2019)

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