Rupee gains, T-bill yields flat and stocks down

Redbulls · 1 Big caps tumble further Wed Jun 12, 2013 5:57 pm

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THARANGA SENARATNE

June 12, 2013 (LBT) - Index dips below 6,300: Following a further correction the market dipped below 6,300 mark with 19 point drop leading to lower turnover and activity. Continuous downward volatility was noted throughout the day stemming from selling pressure in counters that went through an upsurge in the recent past. The counters that lead the decline were John Keells Holdings, Ceylon Cold Stores, Carsons Cumberbatch and Sri Lanka Telecom.

Strong buying in Sampath Bank: Sampath Bank has been attracting strong investor interest during the last couple of days despite its declining price primarily supported by its healthy valuations. The counter saw 1 crossing of 300k shares changing hands at LKR215.0. A number of mid-sized on board blocks changed hands at LKR215.0 with overall on-board volumes reaching 521k shares. The counter closed the day at LKR215.0 with a drop of 0.9%. Two crossings also witnessed in Commercial Bank with 500k share changing hands at LKR118.0.

Renewed Interest in MTD Walkers: MTD Walkers saw 1.4mn shares changing hands with no crossings as one large on board deal of 1mn shares were dealt at LKR30.0. Amidst heavy buying interest the counter appreciated 14.4% to close at LKR31.8. Chevron Lubricants recovered from a sharp dip in price at the start of the day where it recorded an intra-day low of LKR280.1. However the counter closed up for the day at LKR294.5 (+0.4%).

Retail activity on selected counters: Retail interest remained moderate despite lower turnover with activity registered in MTD Walkers while retail selling pressure was also noted in Nation Lanka and its Warrant with the Warrant expected to expire converting it to normal shares.
http://lbt.lk/stock-market

CSE.SAS · 2 Rupee gains, T-bill yields flat and stocks down Wed Jun 12, 2013 11:33 pm

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Benchmark Treasury bill yields closed flat at yesterday’s (12) primary market auction.

The Public Debt Department of the Central Bank offered maturing Treasury bills amounting to Rs. 12 billion. Bids amounted to Rs. 25.9 billion of which Rs. 14.9 billion was accepted by the bank.

The three-month Treasury bill yield eased to 8.67 percent from 8.70 percent a week earlier while the six month yield eased to 9.80 percent from 9.81 percent and the 12-month yield was unchanged at 10.85 percent.

The more liquid five year Treasury bond yield in the secondary market increased to 11.12/14 percent from 11.10/11 percent the previous day. The two-year bond yield eased to 10.75/90 from 10.90/11.05 percent. The one year, three year and eight year yields closed flat at 10.70/80 percent, 11.00/10 percent and 11.45/55 percent respectively.

Interbank call money market rates for overnight borrowings not backed by security rose to 8.56 percent yesterday after staying unchanged at 8.50 percent on Monday and Tuesday. Interbank repo market rates for gilt-backed borrowings eased to 8.14 percent from 8.17 percent the previous day, although higher from 8.07 percent at the beginning of the week.

Excess rupee liquidity in the system amounted to Rs. 13.89 billion yesterday, up from Rs. 7.6 billion on Friday. The Central Bank has sold down its Treasury bill holdings to Rs. 95 billion from Rs. 106.5 billion at the beginning of the week.

The rupee gained some lost ground to close at Rs. 127.45/50 against the US dollar yesterday after falling sharply from Friday’s close of Rs. 126.45/55 to Rs. 127.65/70 on Tuesday.

"Selling forward contracts at the foreign exchange by exporters and banks saw the rupee gain some ground. The Central Bank has not intervened in the market since the dollar took off on Monday," a currency dealer said.

The Colombo bourse continued its downward trend with turnover levels falling.

The All Share Price Index closed 0.30 percent lower, down 19.03 points to 6,284.76 while the S&P SL20 fell 0.25 percent, down 9.06 points to close at 3,551.41.

Turnover fell to Rs. 566.28 million from the previous day’s Rs. 750.59 million

Foreigners became net sellers yesterday (12) with purchases amounting to Rs. 56.11 million as against Rs. 158.7 million in sales leading to a net outflow of Rs. 102.59 million.

"The indices ended on a negative note amid lower turnover levels driven by trades on banking and finance counters, inclusive of crossings on SAMP and COMB," John Keells Stockbrokers said.
http://www.island.lk/index.php?page_cat=article-details&page=article-details&code_title=81136

sriranga · 3 Rupee rebounds; Bourse dips Thu Jun 13, 2013 12:52 am

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Reuters: The rupee edged up on Wednesday from its lowest close in nearly six months due to profit-booking by exporters and banks after the local currency fell almost 1% in the previous session on bond sales by foreign investors.

The rupee ended at 127.45/50 per dollar compared with Tuesday’s close of 127.75/85, its lowest close since 19 December.

The rupee fell 0.96% on Tuesday as some small-time bondholders pulled back on a possible fall in Sri Lanka’s market interest rates and on US Treasury yields moving upward. Importers also bought dollars on fears over a further depreciation.

“Exporters booked profits and there was no importer demand for dollars,” a currency dealer said.

Some analysts said more foreign bondholders could exit in the near future and the rupee could slide to as low as 128.00.

The Central Bank Governor, after holding key policy rates steady on Friday, said the monetary authority would issue guidelines to direct banks to cut lending rates and narrow the gap with the inflation rate.

Sri Lanka’s main stock index edged down in thin trade with foreigners selling shares on a net basis. It fell 0.3%, or 19.03 points, to 6,284.76, its lowest close since 16 May.

Analysts said local investors were worried over possible pull out by foreign investors like in other Asian markets amid the rise in US treasury yields.

Asian shares hit fresh 2013 lows and Japanese stocks had another volatile session on Wednesday, extending a broad rout in global equities as lingering fears of a softening of US stimulus unnerved investors.

Foreigners were net sellers of shares for the first time in the last 24 sessions and the Bourse saw a net foreign outflow of Rs. 102.6 million ($ 803,400). But they have been net buyers of Rs. 16.07 billion worth shares so far this year.

The day’s turnover was Rs. 566.3 million, the lowest since 28 May and well below this year’s daily average of Rs. 1.04 billion.
http://www.ft.lk/2013/06/13/rupee-rebounds-bourse-dips/