Sri Lanka stocks fall, active trading in bonds
ECONOMYNEXT – Sri Lanka’s rupee closed at 178.00/15 to the US dollar, weaker from yesterday’s 177.90/05 but stocks extended falls and an early fall in bond yeilds was capped when an April auction was suddenly brought forward brokers and dealers said.
The Colombo All Share Index fell 0.56 percent or 31 point to close at 5,540 points on a turnover of 522 million rupees.
Index-heavy Melstacorp, a diversified group fell 1.90 rupees to close at 38.00 rupees, Dialog Telekom fell 20 cents to close at 9.30 rupees.
Hatton National Banks fell 1.30 rupees to 174.50 rupees, Commercial Bank gained 20 cents to close at 98.70 rupees and DFCC Bank fell 1.30 rupees to close at 70 rupees.
Colombo’s market price to earnings ratio is 8.7 times of historical earnings.
Bond markets saw active trading, with yields falling in earlier in the day. Profit taking pushed yields of longer tenors towards closing dealers said. Some market participants may have been spooked by a bond auction in April from being brought forward, dealers said.
In the secondary market, 12 month bills closed at 10.37/45 Friday slightly lower from 10.40/45 Thursday.
A bond maturing on 01.08.2021 closed at 10.63/66 from 10.64/68 percent Thursday.
A bond maturing on 15.07.2023 closed at 10.87/95 around the same as Thursday’s 10.88/94 percent.
A 5-year bond maturing on 15.03.2024 closed at 11.00/03 slightly up from yesterdays 10.97/11.02 percent.
A bond maturing on 01.08.2026 closed at 11.05/15 down from yesterday’s 11.10/18 percent.
A bond maturing on 15.06.2027, closed at 11.20/30 around the same level as yesterday’s 11.20/25 percent.
A bond maturing on 01.09.2028, closed at 11.30/50 percent, down from yesterday’s 11.30/37 percent.
A bond maturing on 01.05.2029 closed at 10.40/45 percent, from yesterday’s 10.38/42 percent.