Monday, December 5, 2016

Stocks up in thin trading, bond market dull

Sri Lanka’s stocks opened higher Monday in thin trading but bond markets but bond markets were dull after foreign selling pushed up medium term yields, brokers and traders said.

Dilmah Ceylon Tea Company rose 139 rupees in mid-morning trade with 21 shares traded and Colombo Dockyard rose 6.80 rupees to 79.00 rupees with 359 shares traded. Bond markets have dried up with medium term rates moving up and were inactive Monday dealers said. Bond markets were inactive for the second day, after some active trading was seen on Thursday.

“The rates are going up and investors are going into a shell,” a dealer said. “Year-end seasonal mentality is also coming in.”

Medium term bond yields from 2 to 5 years have edged higher in recent days amid foreign selling dealers said, though longer term yields were steady.

The have been no recent bond auctions but bill yields have edged lower after the central bank started to print money and buy up bonds to sterilize interventions in the forex market.

Author:

0 comments: