Sri Lanka’s Colombo Stock Exchange closed higher on Thursday, recovering from Wednesday’s drop, while the rupee weakened further and bond yields rose across the curve.
The All Share Price Index gained 0.21 percent or 44.72 points to close at 21,833. The more liquid S&P SL20 index added 0.08 percent, or 4.71 points, to settle at 6,038. Analysts attributed the rebound to renewed buying after Wednesday’s slide on Middle East escalation concerns and rising inflation prints, even as the rupee weakened a further 20 rupees during intraday trade to Rs.352.50.
Market turnover was Rs.2.1 billion, with the banking sector leading at Rs.599.8 million. Melstacorp, Colombo Dockyard, ACL Cables and People’s Leasing & Finance were the largest positive contributors to the ASPI, while Central Finance, Richard Pieris, Cargills (Ceylon) and Ceylon Grain Elevators weighed on the index.
Block trades were reported in Hatton National Bank (150,000 shares), JXG (1.54 million shares) and Ceylon Cold Stores (400,000 shares). Amana Bank announced a change of registered address to No. 353 Galle Road, Colombo 3, effective from May 19 following Registrar of Companies approval; its shares closed up 1.85 percent at Rs.27.50.
In the currency market, the rupee traded at 342.00/350.00 in the spot market while the telegraphic transfer rate closed at 345.00 buying and 354.00 selling — a fresh cycle high. Bond yields rose across maturities: the 2029 bond closed at 10.50/65 percent from 10.30/45 percent, the 2034 bond at 11.50/65 percent from 11.40/50 percent, and the 2036 bond at 11.55/75 percent from 11.25/70 percent.
The combination of equity gains and currency weakness comes as opposition MP Harsha de Silva warned the forex market had effectively frozen, with no bids or offers being quoted outside Central Bank counterparty trades.
