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Thursday April 18th, 2024

Sri Lanka stocks reverse gains made since Monday

ECONOMYNEXT– Sri Lanka’s stock closed 1.48 percent lower on Wednesday, dragged down by Dialog Axiata, John Keells Holdings and LOLC Holdings, provisional data showed.

Colombo’s main All Share Price Index (ASPI) reached a daily high of 5,623.82 at market open and fell for the rest of the day, reversing the gains made over the past two days.

The ASPI closed 82.96 points lower or 5,535.45 and the S&P SL20 index of more liquid stocks fell 2.65 percent or 70.44 points to end at 2,586.31.

Asian markets gained on Wednesday with Tokyo up 0.1 percent, Shanghai 0.6 percent, Hong Kong 0.2 percent amid the US Fed administering an emergency rate cut to counter economic effects of the coronavirus, which other central banks are also likely to follow.

Turnover in Colombo reached 478 million rupees. There was moderate foreign investor participation, with outflows of 51.9 million rupees.

Index-heavy Dialog Axiata,a unit of Malaysia’s Axiata group last traded 50 cents down at 11.20 rupees a share, contributing most to the ASPI’s fall.

John Keells Holdings last traded 2.50 rupees lower at 147.50 rupees a share and LOLC Holdings fell 4.50 rupees to 129.00 rupees a share, also pushing the ASPI down.

There was a 82.2 million rupee negotiated trade (crossing) in Sanasa Development Bank at 55.20 rupees per share and the stock closed at 56.20 rupees a share.

A 80 million rupee crossing was seen in Candor Opportunities Fund at eight rupees a share. Dubai-based Eagle Investments sold Candor Opportunities Fund’s holding firm Candor Asset Management on Wednesday for 26.7 million rupees.

Another 60 million rupee crossing was seen in Lion Brewery Ceylon at 600 rupees a share and the stock closed flat at 600 rupees.

The food, beverages and tobacco industry index, which was the most active, fell 0.47 percent.

The bank industry index which was also active fell 2.09 percent. (Colombo/Mar 04/2020)

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Sri Lanka’s discussions with bondholders constructive: State finance minister

ECONOMYNEXT – Sri Lankan authorities continue to engage all debt restructuring negotiations in good faith, within principles of equitable treatment among creditors, and with maximum transparency within the norms of such negotiations, State Minister of Finance, Shehan Semasinghe has said.

“It is standard practice, when a representative group of bondholders is formed, to entertain confidential discussions with such group and its appointed advisors. In the case of Sri Lanka, the Ad Hoc Group of Bondholders represents holders controlling more than 50% of the bonds, which make them a privileged interlocutor for Sri Lanka,” Semasinghe said on X (twitter).

“It is well understood that given the price sensitive nature of the negotiations, and according to market regulations, discussions with the Group and its advisors are to be conducted under non-disclosure agreements. This evidently restricts the ability of the Government to unilaterally report about the substance of the discussions.

“The cleansing statement, which was issued on the 16th of April, at the conclusion of this first round of confidential discussions with members of the Group, aims at informing the Sri Lankan people, market participants and other stakeholders to this debt restructuring exercise, about the progress in negotiations. It provides the highest possible level of transparency within the internationally accepted practices in such circumstances.

“As informed in this statement, confidential discussions held in recent weeks with bondholders’ representatives proved constructive, building on the restructuring proposals presented by both parties. During the talks both sides successfully bridged a number of technical issues enabling important progress to be made. Sri Lanka articulated key remaining concerns that need to be addressed in a satisfactory manner.

“The next steps would entail further consultation with the IMF staff regarding assessments of the compatibility of the latest proposals with program parameters. Following these consultations, we hope to continue discussions with the bondholders with a view to reaching common ground ahead of the IMF board consideration of the second review of Sri Lanka’s EFF program.”

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Sri Lanka rupee weakens at 301.00/302.05 to the US dollar

ECONOMYNEXT – Sri Lanka’s rupee closed at 301.00/302.05 to the US dollar in the spot forex market on Tuesday, from 299.00/10 on Tuesday, dealers said. Bond yields were broadly steady.

A bond maturing on 15.12.2026 closed stable at 11.30/35 percent.

A bond maturing on 15.09.2027 closed at 11.90/12.05 percent up from 11.95/12.00 percent.

A bond maturing on 15.12.2028 closed at 12.10/20 percent down from 12.10/15 percent.

A bond maturing on 15.07.2029 closed at 12.25/40 percent.

A bond maturing on 15.03.2031 closed at 12.30/50 percent. (Colombo/Apr17/2024)

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Sri Lanka Treasury Bill yields down across maturities

ECONOMYNEXT – Sri Lanka’s Treasuries yields were down across maturities at Wednesday’s auction with the 3-month yield moving down 7 basis points to 10.03 percent, data from the state debt office showed.

The debt office sold all 30 billion rupees of 3-month bills offered.

The 6-month yield fell 5 basis points to 10.22 percent, with 25 billion rupees of bills offered and 29.98 billion rupees sold.

The 12-month yield dropped 4 basis points to 10.23 percent with 18.01 billion rupees of bills sold after offering 23 billion rupees. (Colombo/Apr17/2024)

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