Stock exchange makes steady gains amidst political turmoil

Stock exchange makes steady gains amidst political turmoil

Written by Staff Writer

30 Oct, 2018 | 9:33 pm

Colombo (News1st) – Amidst the political crisis in Sri Lanka the Colombo Stock Exchange has made steady gains. The all-share index closed at 5964.32 today.

Sri Lanka’s sovereign dollar bonds and the rupee plunged to record lows while the nation’s stocks surged the most in 5 years, as the political turmoil sent equity and bonds investors to opposites ends of the risk spectrum.

According to Moody’s Investor Services, the crisis would inflict lasting damage to investors confidence. Stock bulls including Mark Mobius took a different view that the upheaval may pave the way for a government focused on boosting economic growth.

Sri Lanka 6.75% 2028 dollar bonds fell three cents to a record low of 87.8 cents on the dollar. The most since the debt sold in April and the rupee slid 0.7% to a lifetime low of 174.15 per dollar.

The upheaval comes as Sri Lankan faces significant bond maturities including USD 1 BN bonds due in January and USD 500 MN due in April. Moody’s added the crisis is credit negative and uncertainty about Sri Lanka’s future policies will dent investor confidence.

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