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Extended COVID-19 wave wallop stocks

Go down  Message [Page 1 of 1]

1Extended COVID-19 wave wallop stocks Empty Extended COVID-19 wave wallop stocks Thu Oct 22, 2020 12:52 am

ChooBoy


Senior Manager - Equity Analytics
Senior Manager - Equity Analytics

Lock down of selected areas in the country due to the continuation of the COVID-19 wave hindered the investor sentiment, resulting in the market falling back to a two-week low.

Index experienced a downtrend since the beginning of the session predominantly due to the selling-pressure in the Transportation sector as it recorded its intra-day low of 5,668 before closing at 5,685 losing a massive 250 points.

Capital Goods counters continued to lead the turnover closely followed by Materials counters making a joint contribution of 38%. Market recorded low foreign participation dominated by the selling-side resulting in a net outflow.

1-YR T-BILL MEETS WITH STRONG RECEPTION

The secondary bond market witnessed strong buying interest, while recording high volumes during the day.
In the short end of the yield curve, 15.11.22 maturity traded at 5.53% while 15.12.22 traded at 5.55%.
15.06.24 changed hands in the range of 6.03%-6.00% while 15.09.24 between 6.04%-6.02%.

Moreover, 01.02.26 traded between 6.55%-6.50% while 01.08.26 traded at 6.50%. 15.08.27 saw the yield hovering in the range of 6.87%-6.85% while 15.10.27 reached 6.85%. 01.07.28 traded at 7.08%-7.07%.

Meanwhile, at the LKR 40.0Bn worth of treasury bill auction held today, 3M bill was not accepted and the yield of 06M bill declined by 84bps to 3.87% while 01 Yr bill declined by 86bps to 4.13% astonishing the investors ahead of the monetary policy due tomorrow.

Following a similar trend as last week, high demand was centred on the benchmark 1 Yr T bill with an acceptance of LKR 25.3Bn in comparison to the offered amount of LKR 18.0Bn.

Meanwhile at bill auction the total offered amount of LKR 40.0Bn was fully accepted for the second consecutive week.

S

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