Friday 28 March 2014

Rs 5B raised in longer termed T-bond issue-Stocks up, rupee steady on moral suasion

Ceylon FT: The Central Bank raised Rs 5 billion for the government through a Treasury bond issue yesterday (27).Total bids amounted to Rs 15.6 billion.

Eight-year bonds worth Rs 1 billion with a 11.20% coupon rate was sold at 10% and a near 20-year bond with a 13.25% coupon rate raised Rs 2 billion at 11.32%.


Rs 2 billion of near 30-year bonds with a coupon rate of 13.50% were sold for 11.75%, the Public Debt Department of the Central Bank said.

The outcome of the auction saw yields dip in the secondary market with a more liquid five year bond yield falling to 8.76/90%, down from 8.82/97% from a day ago.

The rupee closed unchanged from the previous day at 130.70/75 against the US dollar on moral suasion by the Central Bank. "There is some importer demand but no one wants to trade beyond 130.70 because the Central Bank says so," one dealer said not wanting to be named.

Stocks closed 0.70% on Thursday to a five-week high.

The All Share Price Index closed 41.65 points higherat 5,992.62, up 0.70% and the S&P SL20 index of the largest stocks closed 13.10 points higher at 3,274.15, up 0.40%.

Turnover amounted to Rs 1,618.32 million, up from Rs 762.15 million a day ago, with shares of 106 firms gaining and 49 losing.

Foreigners bought shares worth Rs 114.11 million, down from Rs 384.82 million a day ago, and sold shares worth Rs 74.07 million, down from Rs 425.8 million a day ago.

"Foreign investors were net buyers with a net inflow of Rs 40 million. Foreign participation was 6%. Net Foreign inflows were seen in John Keells Holdings (Rs 37.1 million), National Development Bank (Rs 6.6 million) and Bairaha Farms (Rs 4.1 million), whilst net outflow was mainly seen in The Finance non-voting (Rs 4.9 million)," Lanka Securities Research said.

JKH closed Rs 4.80 higher at Rs 222.80 and Sri Lanka Telecom closed Rs 2.30 higher at Rs 46.90.

Good Hope closed Rs 138.80 higher at Rs 1,450.30 and Dialog closed 10 cents higher at Rs 9.10.

NDB Bank closed 90 cents higher at Rs 181.00 with four crossings taking place.

Seylan Bank closed Rs 2.00 higher at Rs 61.00 with one crossing taking place.

Distilleries closed Rs 1.00 higher at Rs 204.00.

The Finance Company non-voting shares closed 40 cents higher at Rs 6.10.
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