Sri Lanka rupee closes lower, bond yields rise
Tuesday March 12, 2019 17:29
ECONOMYNEXT- Sri Lanka’s rupee closed weaker at 178.82/86 to the US dollar on Tuesday while bond yields rose after an auction, dealers said.
The rupee was 178.50/65 to the US dollar at Monday’s close.
The 2019 budget was being debated in parliament, where the government lacks a clear majority.
At a bond auction on Tuesday, the state debt department accepted 30 billion rupees in 5-year bonds at a weighted average yield of 11.04 percent and 40 billion rupees in 10-year bonds at a weighted average yield of 11.35 percent.
Dealers said the auction weighted average yields were within market expectations.
Following a quiet morning session ahead of the bond auction, there were some trades on the 01.08.2026 maturity and the newly issued bonds, dealers said.
Bond yields rose, continuing a trend seen since a 2.4 billion US dollar sovereign bond was issued last week.
A bond maturing on 01.08.2021 closed at 10.70/80 percent on Tuesday, up from 10.65/70 percent at Monday’s close.
A bond maturing on 15.07.2023 closed at 10.90/00 percent, up from 10.80/87 percent at the previous close.
The newly issued 5-year bond maturing on 15.03.2024 closed at 11.05/10 percent.
A bond maturing on 01.08.2026 ended at 11.15/20 percent on Tuesday, up from 11.05/10 percent at Monday’s close.
A bond maturing on 15.06.2027, ended at 11.20/30 percent, up from yesterday’s close of 11.10/20 percent.
A bond maturing on 01.09.2028, closed at 11.33/40 percent on Tuesday, up from 11.20/30 percent at the previous close.
The new bond maturing on 01.05.2029 closed at 11.43/47 percent.
At the Colombo Stock Exchange, the All Share Price Index closed 33.52 points lower at 5,646.78 on Tuesday, while the more liquid S&P SL20 Index closed 22.44 points lower at 2,795.88.
Market turnover was 390.6 million rupees with a net foreign inflow of 6.1 million rupees on moderate foreign participation.
Distilleries Company shares contributed most to the All Share’s fall, closing 30 cents lower at 14.50 rupees per share and contributing a third to the daily turnover.
Negotiated deals accounted for 79.5 percent of Distilleries trades.
Sampath Bank share closed 4.90 rupees lower at 190 rupees and John Keells Holdings ended 1 rupee lower at 154 rupees per share, also weighing the market down.
Share prices of 29 firms gained on Tuesday, while 90 fell. (Colombo/Mar13/2019)