Sri Lanka stocks fall at open after dizzying rally
ECONOMYNEXT – Sri Lanka’s stocks fell 0.9 after the first hour of trading, taking a breather after dizzying gains made in recent days, brokers said while the rupee opened weaker at 176.20/30 against the US dollar on Tuesday while bonds held steady, dealers said.
The rupee closed at 176.15/25 against the greenback on Monday.
In equities, Colombo’s All Share Price Index plunged 1 percent the first hour trading losing 61 points to reach 5,933 points.
The market exceed the psychological 6,000 mark in intra-day trading and profit taking set in, brokers said.
Sri Lanka’s market was re-rated by one multiple based on historical earnings since May amid falling market interest rates and state mandated deposit rate cuts.
Sri Lanka’s economy is recovering after a steep fall in the rupee which was worseend by a political crisis in 2018.
In the secondary bond market, yields were stead in moderate trading, dealers said.
A bond maturing on 15.10.2021 was quoted at 8.80/85 percent on Tuesday, down from 8.82/87 percent at Monday.
A bond maturing on 15.03.2023 was quoted at 9.43/48 percent, easing from 9.45/50 percent.
A bond maturing on 05.06.2024 was quoted at 9.80/81 percent, steady from 9.80/82 percent.
A bond maturing on 01.08.2026 was quoted at 9.90/95 percent, stable from 9.90/96 percent.
A bond maturing on 15.01.2027 was quoted at 9.93/97 percent, steady from 9.93/98 percent.
A 10-year bond maturing on 01.05.2029 was quoted at 10.02/10.05 percent, gaining from 10.00/10.03 percent. (COLOMBO, 30/July/2019)