Colombo equities seen slipping in early trade

At Wednesday’s start the Colombo bourse’s trading was on a low key, with the indices on mixed grounds, analysts said. The ASPI was up by 0.01 per cent by 10.10 am to stand at 7,057.35 while the S&P SL20 stood at 4,027.13, losing 0.05 per cent by this time. Analysts pointed out that, in the midst of heavy government expenditure requirements, Central Bank of Sri Lanka (CB) had raised another Rs.33.4 billion on behalf of the Government at Monday’s trading, thereby increasing demand side inflationary pressure on the economy. They added that at yesterday’s bond auction, a total of Rs. 14 billion was on offer consisting of Rs. 7 billion each on durations of 4.06 years and 6.04 years. “In money markets, the CB’s Open Market Operations (OMO) Department was seen mopping up excess liquidity by way of five auctions for outright sales of Treasury bills,” an analyst said. Total market turnover mainly generated by the banking and finance sector counter was Rs. 100 million at this time.