Sri Lanka rupee gains, bond yields rise at open
Friday March 8, 2019 10:01
ECONOMYNEXT – Sri Lanka’s rupee opened stronger at 178.10/30 to the US dollar on Friday, while bond yields edged up on profit taking, dealers said.
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.
Bloomberg Newswires said 1 billion US dollars of 5-year bonds were sold at 6.85 percent and 1.4 billion US dollars of 10-year bonds were sold 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 yesterday, when yields fell by around 15-20 basis points.
Yields edged up slightly on Friday morning, as some who had held on to their portfolios over the past two weeks sought profits, dealers said.
Twelve-month bills were quoted at 10.50/52 percent on Friday morning, narrower from 10.48/55 percent at Thursday’s close.
A bond maturing on 01.08.2021 was quoted at 10.63/65 percent on Friday, higher than yesterday’s close of 10.57/62 percent.
A bond maturing on 15.07.2023 was quoted at 10.72/80 percent, up from Thursday’s close of 10.70/73 percent.
A 7-year bond maturing 01.08.2026 was quoted at 10.93/03 percent today, up from 10.92/98 percent at Thursday’s close.
A bond maturing on 15.06.2027, was quoted at 11.02/10 percent, slightly higher than Thursday’s close of 11.00/07 percent.
A bond maturing on 01.09.2028, was quoted at 11.10/20 percent Friday morning, with no change from yesterday.
At the Colombo Stock Exchange, the All Share Price Index was at 5,760.68, up 8.33 points in the first half hour of trading.
The more liquid stocks on the S&P SL 20 Index were down 1.82 points at 2,880.86.
Market turnover was 406.6 million rupees.
Ceylinco Insurance accounted for 96.6 percent of the turnover, with the share trading 19.30 rupees higher at 1,920 rupees.
Melstacorp share was trading 2.20 rupees lower at 40 rupees.
Commercial Bank was trading 80 cents lower at 103 rupees per share.