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Sri Lanka rupee opens flat, stocks gain

ECONOMYNEXT – Sri Lanka rupee was quoted flat at 185.72/77 to US dollar in the spot market on Tuesday while bond yields were up and stocks gained, dealers said.

Rupee closed at 185.72/78 to the greenback on Monday.

In equities, Sri Lanka stocks gained 0.21 percent in the first half-hour into trading.

Colombo’s main All Share Price Index (ASPI) gained 10.87 points to 5,115.99, provisional data showed.

The S&P SL20 index of more liquid stocks gained 0.45 percent or 9.82 points to 2,187.99.

Market turnover amounted to 40 million rupees with 52 stocks making gains and 19 stocks making losses.

The Distilleries Company of Sri Lanka dragged the ASPI up, trading at 14.40 rupees a share, up by 30 cents.

Union Bank of Colombo PLC shares traded 80 cents up at 10.00 rupees a share while Chevron Lubricants Lanka PLC stocks traded 3.70 rupees up at 71.50 rupees a share, also contributing to the ASPI’s gain.

Analysts said Sri Lanka’s economy could contract up to 4 percent in 2020 and the budget deficit could expand to as much as 11 percent gross domestic with import controls amplifying the impact of Coronavirus on revenues.

In the secondary government securities market, gilt yields were up in moderate market trade, dealers said.

A 2-year bond maturing on 15.12.2022 was quoted at 5.62/70 percent on Tuesday, down from 5.68/73 percent at Monday’s close.

A bond maturing on 15.01.2023 was quoted at 5.65/75 percent easing from 5.70/77 percent at Monday’s close.

A bond maturing on 15.09.2024 was quoted at 6.23/29 percent down from Monday’s closing at 6.25/35 percent.

A bond maturing on 01.05.2025 was quoted at 6.47/55 percent on Tuesday, edging down from 6.48/58 percent at yesterday’s closing.

A bond maturing on 01.02.2026 was quoted at 6.53/58 percent, down from 6.60/70 from the previous close.

A bond maturing on 15.10.2027 was quoted at 6.85/7.05 percent, unchanged from 6.85/7.05 percent from Monday’s end.

A 10-year bond maturing on 15.05.2030 was quoted at 7.30/37 percent, unchanged from 7.30/38 percent on Monday’s closing.
(Colombo/July28/2020)