Home / Front Page / Stock market ends marginally lower; T-bill yields hit 4-month high

Stock market ends marginally lower; T-bill yields hit 4-month high


Comments / 506 Views / Wednesday, 11 January 2017 00:00


Reuters: Shares erased early gains to end marginally lower on Tuesday as yields on short-term government securities rose in a weekly auction amid uncertainty over government’s monetary and budget policies.

Yields on treasury bill auctions rose 9-19 basis points at a weekly auction on Tuesday to its four-month high, rising for the second straight session after the Central Bank Governor signalled reduced intervention to defend the currency.

The Colombo stock index ended 0.05% down at 6,152.59, slightly above its lowest closing since 4 April, hit on Thursday. Last week, the index fell 0.64% and was down 9.7% for 2016, its second straight annual decline.

The day’s turnover was at Rs. 344.5 million.

“Interest in the market was very low as the current uncertainty is keeping investors away from equities,” said Dimantha Mathew, head of research at First Capital Equities Ltd.

“There was no huge selling pressure. Because of rising market interest rates, new buyers won’t be coming in while the existing investors will hold on.”

Foreign investors bought a net Rs. 18.5 million ($ 123,333) worth of equities on Tuesday. However, foreign investors have been net sellers to the tune of Rs. 798.5 million so far this year.

They were net buyers for a third straight session on Tuesday, after offloading shares for five sessions through Thursday.

Shares in biggest listed lender, Commercial Bank of Ceylon Plc, fell 1.34% while DFCC Bank Plc fell 1.90% and Teejay Lanka Plc fell 3.11%.

Conglomerate John Keells Holdings Plc fell 0.64%.

 


Share This Article


COMMENTS

Today's Columnists

Steamrolling of Central Bank by Minister of Finance: An unsavoury development?

23 January 2017

An unsavoury rift between the Central Bank and Minister of Finance A growing rift between Finance Minister Ravi Karunanayake and the senior management of the Central Bank is surfacing now, worrying both financial markets and prospective fo...


Sustainability: How that translates to agriculture

23 January 2017

Once cultivated, traditional paddy that is grown organically will establish its own markets based on the consumer demand   For the longest time the word “sustainable agriculture” was a catch phrase only. I...


Yahapalanaya lapses – Is Mahinda the option for Muslims?

21 January 2017

Former Minister, Speaker and Premadasa/Rajapaksa loyalist and National List nominee Parliamentarian A.H.M. Azwer along with a few other Muslim Mahinda diehards claim that Yahapalanaya under President Maithripala Sirisena and Prime Minister Ranil W...


First Sinhala talkie ‘Kadawunu Poronduwa’ was released 70 years ago

21 January 2017

History was made 70 years ago when the film ‘Kadawunu Poronduwa’ (Broken Promise) premiered at the Kingsley Theatre in Colombo on 21 January 1947. The Chief Guest was D.S. Senanayake, Minister of Agriculture and Lands under the State C...


Columnists More