Sri Lanka sells US$700mn dollar in 3 and 4-year bonds

ECONOMYNEXT - Sri Lanka has sold 700 million US dollars dollar denominated bonds 693.89 million dollars in 2-year 10-month bonds, data from the state debt office showed.

Sri Lanka sold 693.89 million US dollars of 2-year, 10-month bonds at a weighted average fixed rate of 5.25 percent and 6.11 million US dollars of 3-year 10-month bonds at a rate of 5.52 percent.

The debt office called offers for 700 million dollars of bonds in three tenors. None of the 63.21 million dollars in bids were accepted for 4-year 10-month bonds.

There were 829.60 million dollars of bids for 2-year 10-month bonds and 44.11 million dollars for 3-year 10-months.

Sri Lanka sells 12-month bills, rejects bids for shorter tenors

ECONOMYNEXT - Sri Lanka's has rejected bids for 3 and 6 month bills and sold 10.1 billion rupees of Treasury bills at Wednesday's auction, data from the state debt office showed.

The 12-month yield went up marginally by 02 basis points to 9.39 percent.

Sri Lanka's central bank has a habit of rejecting bills and printing money to worsen currency pressure.

Analysts have also warned the central bank not to buy dollars from the Treasury and create new money, which is another trick used in the past to worsen currency pressure and stop a float from taking hold.

Sri Lankan shares extend fall to near 15-month closing low

Reuters: Sri Lankan shares declined for a fourth straight session on Thursday and posted their lowest close in nearly 15 months, as foreign investors continued to offload the island nation’s risky assets, while month-end settlements also weighed on the bourse.

The Colombo stock index ended 0.11 percent weaker at 6,181.48, its lowest close since April 4, 2017.

“Foreign selling has not stopped yet which is pushing the market down,” said Dimantha Mathew, head of research, First Capital Holdings.

“Today we saw some foreign buying and that absorbed the selling pressure to some extent. Margin calls are also there.”

Foreign investors net sold equities worth 196.1 million rupees ($1.24 million), extending the year-to-date foreign outflows to 1.2 billion rupees this year.

Turnover was 1.3 billion rupees, more than this year’s daily average of 934.9 million rupees.

Shares of Cargills (Ceylon) Plc fell 4.4 percent, conglomerate John Keells Holdings Plc ended 0.7 percent weaker, Bukit Darah Plc declined 3.7 percent and Commercial Bank of Ceylon Plc, the country’s biggest listed lender, slipped 0.7 percent.

Finance Minister Mangala Samaraweera said last week the economy was likely to grow about 4.5 percent this year, below a central bank estimate of 5 percent.

The International Monetary Fund (IMF) said on June 20 Sri Lanka’s economy remained vulnerable to adverse shocks because of sizable public debt and large refinancing needs.

Ratings agency Moody’s said on Wednesday a strengthening U.S. dollar since mid-April has increased the credit risk of several emerging markets, including Sri Lanka, due to currency depreciation.

Moody’s said a strong dollar would also lead to a drop in foreign exchange reserves of countries such as Argentina, Ghana, Mongolia, Pakistan, Sri Lanka, Turkey, and Zambia.

Sri Lankan markets were closed on Wednesday for a public holiday. 

($1 = 158.1000 Sri Lankan rupees) 

(Reporting by Ranga Sirilal; Editing by Subhranshu Sahu)

Sri Lankan shares hit near 15-mth closing low on margin calls, foreign selling

Reuters: Sri Lankan shares fell for a third straight session on Tuesday and posted their lowest close in nearly 15 months as margin calls triggered selling and as foreign investors continued to offload the island nation’s risky assets.

The Colombo stock index ended 0.52 percent weaker at 6,188.05, its lowest close since 4 April 2017.

“Margin calls are coming up and selling is accelerating. Foreign selling is also dragging the market,” said Dimantha Mathew, head of research, First Capital Holdings.

Foreign investors net sold equities worth 26.4 million rupees, extending the year-to-date foreign outflows to 978.7 million rupees this year.

Turnover was 541.2 million rupees ($3.42 million), well below this year’s daily average of 931.9 million rupees.

Shares of Sri Lanka Telecom Plc lost 5.8 percent, while conglomerate John Keells Holdings Plc ended 1.3 percent weaker, Hatton National Bank Plc closed 2.2 percent down and Ceylon Tobacco Company Plc ended 0.8 percent lower.

Finance Minister Mangala Samaraweera said last week the economy was likely to grow about 4.5 percent this year, below a central bank estimate of 5 percent.

The International Monetary Fund (IMF) on Wednesday said Sri Lanka’s economy remained vulnerable to adverse shocks because of sizable public debt and large refinancing needs.

Stock, bond and foreign exchange markets are closed on Wednesday for a public holiday. 

($1 = 158.2500 Sri Lankan rupees) 

(Reporting by Ranga Sirilal; Editing by Vyas Mohan)

Sri Lankan stocks end weaker near 14-month low in dull trade

Reuters: Sri Lankan shares ended weaker on Monday, staying close to a 14-month low hit last week as investors sold diversified shares in dull trade with turnover at a nine-week low.

The Colombo stock index ended 0.13 percent weaker at 6,220.13, near its lowest close since April 2017, which was on Wednesday.

The bourse fell 1.63 percent last week recording its fifth straight week of losses.

“Low key market with marginal dip,” said Hussain Gani, deputy chief executive at Softlogic Stockbrokers.

“Its mainly local investor participation, we’ve not seen major foreign activity. Investors are waiting for opportunities and they will get in when there is an opportunity.”

Turnover was 176.1 million rupees ($1.11 million), its lowest since April 16 and well below this year’s daily average of 935.3 million rupees.

Foreign investors sold equities of a net worth of 18 million rupees, extending the year-to-date net foreign outflows to 952.3 million rupees of shares this year.

Shares of Hatton National Bank Plc lost 1.2 percent, while Distillers Company of Sri Lanka Plc ended 0.96 percent weaker, Carsons Cumberbatch Plc closed 1.9 percent down and Lanka IOC Plc ended 1.2 percent weaker.

Finance Minister Mangala Samaraweera said last week the economy was likely to grow about 4.5 percent this year, below a central bank estimate of 5 percent.

The International Monetary Fund (IMF) on Wednesday said Sri Lanka’s economy remained vulnerable to adverse shocks because of sizable public debt and large refinancing needs. 

($1 = 158.8000 Sri Lankan rupees) 

(Reporting by Ranga Sirilal)

Sri Lankan stocks end steady, marking fifth straight losing week

Reuters: Sri Lankan shares ended steady on Friday, staying close to the 14-month low hit this week and marking their fifth straight week of losses.

The Colombo stock index ended 0.01 percent weaker at 6,228.15, hovering near its lowest close since April 2017 hit on Wednesday. The bourse fell 1.63 percent this week.

“Though the market is attractive investors are still awaiting direction. We will see sideways movement for the next couple of days as the sell-off has stopped,” said Atchuthan Srirangan, assistant manager - research, First Capital Holdings Plc.

Turnover was 277.4 million rupees ($1.8 million), well below this year’s daily average of 942 million rupees.

Foreign investors sold equities net worth 72.7 million rupees, extending the year-to-date net foreign outflows to 934.3 million rupees of shares so far this year.

Shares of Dialog Axiata Plc ended 0.2 percent weaker, while Melstacorp Ltd fell 0.9 percent.

Finance Minister Mangala Samaraweera on Tuesday said the country’s economy is likely to grow around 4.5 percent this year, below the central bank estimate of 5 percent in a sign political uncertainty is curbing a more robust recovery after a weak 2017.

The International Monetary Fund (IMF) on Wednesday said Sri Lanka’s economy remains vulnerable to adverse shocks because of sizable public debt and large refinancing needs. 

($1 = 158.7000 Sri Lankan rupees) 

(Reporting by Ranga Sirilal; Editing by Amrutha Gayathri)

Sri Lankan stocks climb from 14-mth low, snap 10-session losing run

Reuters: Sri Lankan shares ended slightly firmer on Thursday, snapping a 10-session losing streak, as local investors bought battered beverage and telecom shares.

The Colombo stock index gained 0.18 percent to close at 6,229.06, edging higher from its lowest close since April 5, 2017 hit on Wednesday.

“Market is up on local buying, mostly its bargain-hunting by local investors as the market has dropped too low in very little time,” said Hussain Gani, deputy CEO at Softlogic Stockbrokers.

Turnover stood at 416.2 million rupees ($2.6 million), well below this year’s daily average of 948 million rupees.

Foreign investors sold equities net worth 34 million rupees, extending the year-to-date net foreign outflows to 861.6 million rupees of shares so far this year.

Shares of Ceylon Tobacco Co Plc rose 1.8 percent, while Sri Lanka Telecom Plc ended 3.8 percent higher. Distillers Co of Sri Lankan Plc gained 1.5 percent and Melstacorp Ltd ended 1.9 percent firmer.

Finance Minister Mangala Samaraweera on Tuesday said the country’s economy is likely to grow around 4.5 percent this year, below the central bank estimate of 5 percent in a sign political uncertainty is curbing a more robust recovery after a weak 2017.

The International Monetary Fund (IMF) on Wednesday said Sri Lanka’s economy remains vulnerable to adverse shocks because of sizable public debt and large refinancing needs. 

($1 = 159.2500 Sri Lankan rupees) 

(Reporting by Ranga Sirilal; Editing by Amrutha Gayathri)