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Tuesday, May 14, 2013

Bourse, rupee, T-bond yields down

The Colombo bourse dipped yesterday (13) on profit taking, reversing a seven day upswing, while the rupee weakened against the US dollar. Treasury bond yields eased on improved liquidity levels.

The rupee closed at Rs. 126.30/35 against the US dollar, weakening from an opening position of Rs. 126.17/20 against the greenback on importer demand, currency dealers said.

Meanwhile yields plunged across the board in the secondary market for Treasury bonds as activity levels picked up on improving liquidity levels, except the 8 year bond where the yield tightened to 11.45/60 percent from the previous day’s 11.40/60 percent.

The more liquid five year bond yield fell to 10.93/96 percent from 10.98/11.02 percent while the four year yield slumped to 10.70/77 percent from 10.85/11.00 percent.

The three year bond yield fell to 10.78/82 percent from 10.80/90 while the two year yield fell to 10.60/80 percent from 10.80/11.00. The one year bond yield fell sharply to 10.50/70 percent from an opening position of 10.75/90 percent.

The Central Bank’s Treasury bill holdings fell to Rs. 94.54 billion yesterday from Rs. 103.94 billion on Friday.

Currency dealers said market interest rates could come down after the Central Bank cut monetary policy interest rates by 50bps last week.

Profit taking saw the All Share Price Index fall 10.97 points to close 0.18 percent lower at 6,239.03 while the S&P SL20 closed 0.34 percent lower, down 12.05 points to 3,518.85.

Turnover amounted to Rs. 535.05 million.

Foreign purchases amounted to Rs. 176.94 million, leading to a net inflow of Rs. 152.99 million.

"The indices dipped reversing a 7-day upward trend, mainly due to profit taking on a selected set of large cap and second tier counters. Activity levels slowed down during the day and were dominated by trades on banking and diversified counters, inclusive of a crossing on JKH," John Keells Stockbrokers said.

"Trades in John Keells Holdings and Softlogic Holdings accounted for 28% of the day’s turnover.

Losers modestly outpaced gainers with SMB Leasing(X), Samson International and Nation Lanka Finance(X) falling by 20%, 8.9% and 6.7% and offsetting gains in J.L.Morison(X), J.L.Morison and Radiant Gems which rose by 39.9%, 21.3% and 13.1% respectively," DNH Financial said.

source - www.island.lk