NDB Weekly Market Recap 29 May 2015

The ASPI and S&P SL20 recorded a weekly loss of 0.94% and 1.63% respectively. This has brought down the monthly ASPI and S&P SL20 returns to 0.58% and (1.30%) respectively. The motors sector recorded the highest return for the week of 2.95% whilst the services sector was the second highest, increasing by 2.76%. Meanwhile, the largest price gain was witnessed in People's Merchant Finance whilst Agstar nonvoting recorded the largest price loss. Foreigners remained active and closed as net sellers for the week.

In the weekly T-Bill auction, the weighted average (W.Avg) yield on the 364 day T-Bill resumed its downward trend after a lapse of one week to record a dip of two basis points(bps) to 6.29% whilst the W.Avg’s on the 91 day T-Bill and 182 day T-Bills dipped by one basis point each to 6.07% and 6.18% respectively. The W. Avgs of the 4.11 year maturity of 01.05.2020 and the 8.03 year maturity of 01.09.2023 was seen declining by 11 bps and 95 bps respectively to 8.35% and 8.78% against its previously recorded W.Avgs in Treasury bond auctions on 28th May. In addition, the newly-issued 14.11 year maturity of 15.05.2030 was seen recording a W. Avg of 9.67%.

A buying interest was witnessed in secondary bond markets throughout the day followed by the news of a 10 year sovereign dollar bond issue by CBSL. In the money markets, overnight call money and repo rates remained steady at average of 6.10% and 5.78% respectively as at 29th May with surplus liquidity of LKR 111.997 Bn