Sri Lanka stocks slightly lower, bonds steady amid global rout
ECONOMYNEXT – Sri Lanka’s stocks were marginally lower in the first hour of trading with the Colombo All Share Index down 0.04 percent in the first hour of trading amid a global stock market rout, while bond market yields were mostly unchanged, brokers and dealers said.
Sri Lanka’s bond yields picked up last Thursday and Friday amid some selling pressure, but has remained around the same levels after markets opened Tuesday following a three day holiday.
Two way quotes of most yields were unchanged from Friday.
2-year bond 01.05.2020 were quoted at 9.20/25 percent, up from last Friday 9.18/20 percent.
5-year bond 15.05.2023 were quoted at 9.42/47 almost unchanged from last Friday’s 9.40/47 percent.
9-year bond 16.06.2027 were quoted at 9.70/80 unchanged from last Friday’s 9.70/80 percent.
12-year bond maturing 15.05.2030 were quoted at 9.90/98 last Friday 9.90/98 percent.
Colombo Stocks were steady in the first half hour of trading amid improving fiscal data but analysts say an inflationist-devaluvanist monetary stance may contribute to a continuing policy of unsound money that has dogged the country since independence.
Colombo stocks though exposed to foreign investors, do not react quickly to global events.
Local analysts are also closely watching local elections on February 10, which could be a pointer to how the public views the current administration.
The opposition Sri Lanka Podujana Peramuna of ex-President Mahinda Rajapaksa has been keen to turn the local elections into a referendum on the administration.
Many Asian markets plunged over 5 percent after an overnight 4.1 percent fall in US dolars. Oil prices also fell.
– Key figures around 0250 GMT –
Tokyo – Nikkei 225: DOWN 5.3 percent at 21,487.87 (break)
Hong Kong – Hang Seng: DOWN 4.4 percent at 30,809.16
Shanghai – Composite: DOWN 2.1 percent at 3,413.65
Euro/dollar: DOWN at $1.2364 from $1.2373 at 2200 GMT
Pound/dollar: DOWN at $1.3945 from $1.3958
Dollar/yen: DOWN at 108.70 yen from 109.13 yen
Oil – West Texas Intermediate: DOWN 56 cents at $63.59 per barrel
Oil – Brent North Sea: DOWN 58 cents at $67.04 per barrel
New York – DOW: DOWN 4.6 percent at 24,345.75 (close)
New York – S&P 500: DOWN 4.1 percent at 2,648.94 (close)
London – FTSE 100: DOWN 1.5 percent at 7,334.98 (close) (Colombo/Feb06/2018)