Sri Lanka rupee quoted weaker, bond yields stable
ECONOMYNEXT- Sri Lanka’s rupee was quoted marginally firmer at 181.68/75 to the US dollar in the spot market on Tuesday while bond yields remained stable and stocks traded 0.60 percent lower, dealers said.
The rupee ended at 181.70/85 to the greenback on Monday.
In equities, Colombo’s All Share Price Index (ASPI) fell 34.57 points to 5762.73 and S&P SL20 index of more liquid stocks fell 0.86 percent or 23.70 points to 2747.60, within the first hour of trade.
Market turnover was 232 million rupees while 20 stocks gained, and 50 stocks fell.
Ceylon Tobacco Company stocks fell 5.00 rupees to 1,135.00 rupees a share, John Keells Holdings traded 160.00 rupees a share, down 2.30 rupees a share and Union Assurance stocks fell 31.00 rupees a share to trade at 323.00 rupees a share, contributing most to ASPI’s fall.
In the government securities market, bond yields were stable in dull trade while 2024 maturity remained liquid, dealers said.
Dealers said foreign investors continued to exit the market as the coronavirus spiked outside China; a trend seen in emerging markets.
The spread of coronavirus cases spiked outside mainland China, including Bahrain, Kuwait, Oman reporting first cases while Iran reported 17 cases and Korea emerging the new COVID-19 hotbed, media reports said,
A total of nine countries in the Middle East reported their first coronavirus cases on Monday.
The World Health Organisation (WHO) said on Monday that the coronavirus outbreak has not reached a pandemic level but advised the countries to prepare to deal with such situations, reported Al Jazeera.
A bond maturing on 15.12.2021 was quoted flat at 8.95/05 percent on Tuesday from its previous close.
A bond maturing on 01.09.2023 was quoted at 9.40/55 percent, easing from 9.50/60 percent at the previous close.
A bond maturing on 15.09.2024 was quoted at 9.70/78 percent on Tuesday, steady from 9.70/80 percent at Monday’s end.
A bond maturing on 15.10.2027 was quoted unchanged at 9.85/10.00 from Monday’s close.
A bond maturing on 15.05.2030 was quoted 9.95/10.20 percent flat from yesterday’s close.
A bond maturing on 15.09.2034 was quoted at 9.90/10.25 percent, easing from 10.10/10.30 percent.
Kithmina Hewage- Institute of Policy Studies