Sri Lanka stocks open slightly higher, bond markets dull ahead of budget
ECONOMYNEXT – Sri Lanka’s stocks opened slightly higher Thursday as Sri Lanka awaited a budget for 2017, later in the day and bond markets were quiet after yields rose a day earlier.
Sri Lanka is expected to present a budget that will cut the deficit to 4.7 percent of gross domestic product in 2017, down from a targeted 5.4 percent this year, Finance Minister Ravi Karunanayake has said.
The Colombo All Share Index was up 9 points to 6.426points shortly after 10.00 am.
Sri Lanka is expected to impose capital gains tax on land in this year’s budget.
Listed firms have been selling bonds aggressively over the past few weeks with uncertainty over whether a tax break for interest on the securities will continue next year.
In government bond markets, yields were 10 to 15 basis points higher from two days ago, dealers said.
Nine months bills were quoted around 10.15/30 percent, same as the average yield for 12-month bills at an auction yesterday.
2-year bonds were quoted 11.10/25 percent levels up from 11.00/11.10 two days ago, dealers said.
3-year bonds (15.09.2019) were quoted around 11.55/65 percent up from 11.45/55
5-year bonds (01.03.2021) were quoted around 11.80/90 percent up from 11.70/75
10-year bonds (01.08.2026) were quoted around 12.10/15 percent up from 12.00/05 (Colombo/Nov11/2016)