The Colombo Stock Exchange was trending down at midday on Monday, with the benchmark All Share Price Index falling 1.68%, EconomyNext reported.
The ASPI was down 366.31 points at 21,377.82 at the 10:56 a.m. read, while the more liquid S&P SL20 was off 1.20%, or 72.16 points, at 5,951.84. Since the Central Bank announced a 100-basis-point increase in the Overnight Policy Rate to 8.75% on May 26, the ASPI has dropped 797.32 points.
Positive contributors to the index were SANASA Development Bank, up 5.48% at Rs. 55.80, and PGP Glass Ceylon, up 1.63% at Rs. 56.00. Resus Energy fell 2.75% to Rs. 46.00 and remained among the active stocks.
Bukit Darah was the biggest negative contributor, down 6.41% at Rs. 800.00. Melstacorp fell 1.64% to Rs. 180.00, Sampath Bank declined 1.43% to Rs. 138.25 and Commercial Bank of Ceylon eased 0.99% to Rs. 200.25.
Market turnover was Rs. 1 billion. Capital goods led turnover with Rs. 505.98 million.
The midday drop extends a selloff that began the day after the surprise 100bp rate hike. The benchmark fell from 22,011 on June 3 to 21,760 by June 4 as banks, insurers and capital-goods exporters absorbed the higher cost of borrowing. Earlier this year the index had peaked above 22,900 before tightening rate expectations took hold.
Update — June 8 (rupee, bond close): EconomyNext reported the rupee closed at 337.00/30 to the US dollar in the spot market on Monday, down from 335.50/336.25 the previous day — a sharp single-session move that extends the currency’s 5.4 percent year-to-date depreciation. The telegraphic transfer rate was 331.50 buying / 340.50 selling. Bond yields were broadly steady: a bond maturing on 1 August 2030 closed at 12.15/20 percent (up from 12.05/20), a January 2033 bond closed flat at 12.30/65 percent and a March 2035 bond closed at 12.80/13.10 percent (up from 12.80/13.00). The rupee-side weakness comes despite CBSL net dollar sales of about US$211 million in May to defend the currency, and underscores why the Monetary Board moved on the policy rate at the end of May.
