NDB Securities Weekly Market Update 12 June 2015

The ASPI and S&P SL20 recorded weekly losses of 0.86% and 1.25% respectively. The construction and engineering sector recorded the highest return for the week of 7.95% whilst the land and property sector was the second highest, increasing by 3.20%. Meanwhile, the largest price gain was witnessed in City Housing & Real Estate Co. whilst Ceylon Leather Products Warrant 14 recorded the largest price loss. Foreigners remained active and closed as net sellers for the week.

In this week’s T-Bill auction, the Weighted Average (W.Avg.) yields of 182 day and 364 day T-Bills remained steady at 6.18% and 6.29% for a third consecutive week whilst the W.Avg on the 91 day T-Bill was recorded an increase for the first time in nine weeks by 1 bp to 6.08%. The total accepted amount exceeded the total offered amount of LKR 22 Bn by LKR 3.60 Bn with the 91 day Bill accounting for 54.41% of the total accepted amount.

In the primary T-Bond auction held on 9th June, the 4 year 10 month maturity of 01-05-2020 and the 7 year 03 month maturity of 01-10-2022 recorded W.Avg. yields of 8.11% and 8.56% respectively whilst all bids for the 9 year 09 month maturity of 15-03- 2025 were rejected. T-Bond Auctions held on 12th June offered the same series of bonds. In the latter auction all the bids for maturity of 01-05-2020 was rejected whilst maturities of 01-10-2022 and 15-03-2025 were accepted with W.Avg.
yields of 8.56% and 8.89% respectively. The total accepted amount during the week via the two auctions was LKR 47.6 Bn.

Please refer the link for more details-
https://drive.google.com/file/d/0B6oYIOgoj7LDc2dQZ3gxMzQwS2s/view?usp=sharing