Sri Lanka rupee gains on remittances, bonds dull ahead of auction
Wednesday March 27, 2019 11:00
ECONOMYNEXT – Sri Lanka’s rupee gained Wednesday morning to 176.85/00 against the US dollar in the spot market, while bond yields were around the same levels as Tuesday in a dull market, dealers said.
The rupee closed at 177.40/55 to the US dollar in the spot market on Tuesday, appreciating from 178.00/15 on Monday.
Currency dealers said there was demand for the rupee from exporters, and due to higher remittances from expatriate Sri Lankans to their families ahead of the local holiday season in April.
The bond market was quiet ahead of a primary bills auction later on Wednesday, dealers said.
Yields were trading around the same levels as Tuesday, after rates increased on selling pressure for three consecutive days when the Central Bank suddenly brought forward an April 9 bond auction to April 2, dealers said.
Market participants were awaiting the turnout of Wednesday’s auction, dealers said.
Twelve-month bills were quoted at 10.35/50 percent on Wednesday, stable from 10.35/45 percent at Tuesday’s close.
A bond maturing on 01.08.2021 was quoted at 10.63/70 percent, falling from 10.65/70 percent.
A bond maturing on 15.07.2023 was quoted at 10.90/11.00 percent, flat from the previous close.
A 5-year bond maturing on 15.03.2024 was quoted at 11.02/04 percent on Wednesday, stable from Tuesday’s 11.02/07 percent.
A bond maturing on 01.08.2026 was quoted at 11.10/25 percent, stable from 11.15/30 percent.
A bond maturing on 15.06.2027 was quoted at 11.30/40 percent, stable from 11.30/37 percent.
A bond maturing on 01.09.2028 was quoted at 11.35/42 percent, up from 11.32/40 percent.
A bond maturing on 01.05.2029 was quoted at 11.40/45 percent on Wednesday, falling from 11.43/45 percent at Tuesday’s close.
At the Colombo Stock Exchange, the All Share Price Index was up 4.05 points to 5,517.73 in the first hour of trading on Wednesday..
The more liquid S&P SL20 Index was up 3.83 points to 2,711.83.
Market turnover was low at 14.5 million rupees.
Index-heavy John Keells Holdings was trading 50 cents higher at 150.50 rupees per share.
Nations Trust Bank was trading flat at 90 rupees per share, generating the highest turnover, while Sampath Bank was trading flat at 175 rupees per share. (Colombo/Mar27/2019-SB)