Sri Lanka bonds volatile, stocks up as cabinet re-shuffle awaited
ECONOMYNEXT – Sri Lanka’s bond yields opened lower but saw volatility Friday as the ruling coalition said it will continue after a cabinet re-shuffle in the wake of humiliating defeat at local council elections, dealers said, while stocks opened higher.
The coalition administration is set to announce a cabinet re-shuffle.
Markets are waiting to see whether Prime Minister Ranil Wickremesinghe under whose watch a massive securities scam occurred and an alleged cover up also tainted the good governance credentials will retain the central bank under him.
Stock opened higher with the Colombo All Share Index gaining 0.3 percent in the first hour of trading.
In forex markets the spot US dollar was quoted at 155.00/10 at opening slightly weaker than the yesterday’s close of 154.80/155.10.
Bonds yield opened lower Friday morning but picked later in active trading dealers said.
On Friday morning a 3-year bond maturing on 01.03.21 opened at 9.80/90 down from yesterday’s intra-day high of 10.95/05 percent.
In came down to 9.65 percent but was quoted later at 9.73/82 percent, dealers said.
An 8-year bond maturing on 01.08.2026 opened at 10.20/26 down from a 10.35/40 intra-day high yesterday.
Lowest business done at 10.07 now quoting 10.20/25 percent.
A 12-year bond maturing on 15.05.2030 opened 10.35/50 down from an intra-day high of 10.50/55 yesterday. It was later quoted at 10.25/40 percent. (Colombo/Feb16/2018)